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Frequently asked questions

All FAQs about loans

It depends on your retirement plan's rules. Log in to your account to see if you can borrow from your plan.

We'll do the math for you. Log in to your account to see if you can borrow.  There are two types of loans you may be eligible for, depending on your employer’s plan: a Retirement Plan Loan or a Collateralized Loan.
 
If you're eligible for a Retirement Plan Loan:
  • The minimum loan amount is $1,000 or an amount specified by your retirement plan
  • The maximum loan amount is $50,000 (less your highest outstanding loan amount in the past 12 months)
  • The loan is funded from the eligible accumulations in your plan
  • The interest rate is fixed and based on prime rate + 1; please note that depending on the state associated with your plan, unique state interest rate rules may apply
  • The loan origination fee is $75 for a general purpose loan and $125 for a residential loan that are paid back through payroll deduction. You’ll want to take this fee into account when deciding how much to borrow. For example, let’s say you want to borrow $10,000 and your retirement plan has a $75 loan origination fee. Then the actual amount you’ll receive is $9,925.
 
If you're eligible for a Collateralized Loan:
  • The minimum loan amount is $1,000 or an amount specified by your retirement plan
  • The maximum loan amount is $50,000 (less your highest outstanding loan amount in the past 12 months)
  • The loan is secured by collateral which equals 110% of the outstanding loan balance and is held in the TIAA Traditional Annuity
  • The interest rate is variable and may fluctuate based on the Moody’s corporate bond yield (a common benchmark); please note that depending on the state associated with your plan, unique state interest rate rules may apply
 

In many cases, you can request a loan when you have one outstanding; however, your plan rules and state laws may prohibit multiple loans under certain circumstances.
 
An outstanding loan could be the result of:
  • An active loan currently being repaid
  • A suspended loan due to leave of absence
  • A defaulted loan
You can log in to your account to see if you are eligible to take another loan from your account and how much is available.
 

  1. Log into TIAA.org
  2. Select MY ACCOUNT (top of the page)
  3. Select Take a loan/withdrawl
  4. Follow the on-screen instructions to complete your loan request
Please note that you may be required to print, fill out and return additional forms to complete your request.  If this applies to you, you’ll see instructions online before you submit your loan request.
 

  1. Log in to your account at TIAA.org
  2. Select MY ACCOUNT (at the top of your home page)
  3. Select STATUS OF LOANS/WITHDRAWALS
  4. Locate your loan request
  5. Click on SELECT in the ACTION column
 

  1. Log in to your account at TIAA.org
  2. Select MY ACCOUNT (at the top of your home page)
  3. Select STATUS OF LOANS/WITHDRAWALS
  4. Locate your loan request
  5. Click on SELECT in the ACTION column
  6. Go to the REQUIRED DOCUMENTS section
 

  1. Log in to your account at TIAA.org
  2. Select MY ACCOUNT (at the top of your home page)
  3. Select STATUS OF LOANS/WITHDRAWALS
  4. Locate your loan request
  5. Click on SELECT in the ACTION column
  6. Go to the REQUIRED DOCUMENTS section
 

The short answer is no, if it is repaid on time. However, any portion of your loan that is not repaid on time is subject to default, generally resulting in:
  • A taxable distribution from your account that TIAA will report to the IRS
  • Payment of ordinary income tax on the defaulted amount
  • A potential 10% early withdrawal penalty if you are under age 59½
Your plan rules may not allow you to take any additional loans if you have a loan that defaulted or you may be required to pay back the defaulted loan plus interest. Call us at 800-842-2776 or speak to your employer to see how these rules may apply to you.
  • By check: generally within five business days if all required documentation has been received in good order and your loan request has been approved
  • For Electronic Funds Transfer (EFT): generally within two business days if all required documentation has been received in good order and your loan request has been approved

Yes. The amount held as collateral for your loan will earn TIAA contractual interest, and additional amounts as declared by TIAA’s Board of Trustees. This is not the same as the interest rate to pay back your loan.
Retirement Plan Loans:
 
Via payroll deduction—
  • First repayment is usually required about a month after the loan is issued and is determined by your payroll frequency
  • Repayments are automatically deducted from your paycheck and sent directly to TIAA
Via bank debit (if your plan allows)—
  • Repayments are due monthly if paying by bank debit
  • First repayment is usually due one month after the loan is issued
  • Recurring debit payments can be set up to occur on the 1st or 15th of the month
Collateralized Loans:
  • Repayments are due the first of the month via bank debit
  • The first repayment is due on the first business day of the calendar month following the issuance of your loan

No, you are not penalized.
  • Retirement Plan Loan prepayments are accepted in increments of the scheduled repayment amount
  • Collateralized Loan prepayments are accepted if equal to or greater than the scheduled repayment amount

It depends on the type of loan you have.
  • For a Retirement Plan Loan, with payments that are made through payroll deduction, you can’t change the repayment frequency; this is based on when you get paid (weekly, biweekly, etc.)
  • For a Collateralized Loan, repaid via bank debit, you can change the repayment frequency from quarterly to monthly but not from monthly to quarterly and  must be made on the first day of the month; to change the frequency, log in to your account at TIAA.org

No, the repayment method is determined by your employer’s plan rules. In the event your employment status changes, the plan rules will determine what repayment methods are available. You may be required to pay off the outstanding balance of your loan or you may be able to continue making repayments via a bank debit.
The IRS provides a grace period before a loan will be declared in default, but ultimately it will depend on the specifics of your loan. Once your amount is overdue, you have until the end of the next calendar quarter to make a repayment. For example, if you missed a repayment in February, you will have until the end of June to catch up. Otherwise, the outstanding loan balance, including accrued interest until the end of the grace period, will be considered a taxable distribution and reported to the IRS.
You can make a one-time loan repayment for a collateralized loan by following these steps:
  1. Log in to your account at TIAA.org
  2. Select MY ACCOUNT (at the top of your home page)
  3. Select STATUS OF LOANS/WITHDRAWALS
  4. Locate your loan request
  5. Using the ACTION dropdown, select VIEW/MODIFY REQUEST 
  6. Follow the instructions in the SCHEDULE A REPAYMENT section at the top of the page to complete a one-time repayment
 
Considerations for a one-time repayment:
  • The funds will be removed from your bank account the next business day
  • You cannot make a one-time repayment within three business days of a scheduled repayment
  • You can only make a single one-time repayment request at a time
  • This one-time payment will not be applied to your next scheduled repayment; which you’re still required to make

  1. Log in to your account at TIAA.org
  2. Select MY ACCOUNT (at the top of your home page)
  3. Select STATUS OF LOANS/WITHDRAWALS
  4. Locate your loan request
  5. Using the ACTION dropdown, select VIEW/MODIFY REQUEST 
  6. Choose EDIT for LOAN REPAYMENT INFORMATION

In some cases during a divorce, the loan may be considered a property distribution that could impact a Qualified Domestic Relations Order (QDRO). Until TIAA receives a restraining order or a court-entered QDRO, we cannot restrict a participant from making withdrawals from their account. Internal transfers are allowed, but with caution that it does not impede the instructions in the QRDO.
 
Once we receive a restraining order or QDRO, a participant must stop any activity in his or her account until the QDRO is implemented based on the funds available in the retirement plan account. Any residual balance has to be worked out among the claimants.
 
TIAA cautions participants not to make withdrawals while they are negotiating how property will be distributed. After the QDRO date, if the participant makes contributions, requests a withdrawals or transfers, the contributions and transactions will be reflected solely on the participant’s account except for Required Minimum Distribution Options (MDO) elections and loan repayments.
 
While the marital property distribution is pending, obtaining the written consent of the spouse in exercising ownership options is required during the marriage for accumulations governed by the Retirement Equity Act (REACT). Also, spousal consent may be required to execute certain transactions while the distribution settlement is pending.
 
To find out whether your accumulations are governed by REACT call us at 800-842-2776 weekdays from 8 a.m. - 10 p.m. (ET) and Saturdays from 9 a.m. - 6 p.m. (ET).

There are restrictions on TIAA’s ability to split any balances needed to secure the loan. Consider transferring other TIAA contract assets or other property, in lieu of an interest in a loan contract.
Please check your quarterly statement or log in to your account at TIAA.org for outstanding loan information. You may want to consult with your attorney before making any changes.
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