The Retirement Income Plan for Teaching Faculty of Harvard University does not offer a loan feature.
You can withdraw all or part of your account in a single cash payment, depending on your plan rules and the terms of your contracts.
- Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking periodic payments under the terms of the contract. Please refer to your contract or certificate for full details or contact us at 800-527-1398.
If your plan allows, you can choose to receive regular income payments (minimum $100) on a semimonthly, monthly, quarterly, semiannual or annual basis. You can increase, decrease or suspend the payments at any time.
- These withdrawals are not available from TIAA Traditional Account balances.
When you leave your employer, you may be eligible to withdraw your retirement savings. Your plan may distribute your entire balance if the value does not exceed $2,000. Even if your plan doesn't allow cash distributions, you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (either $1,000 or $5,000).
You can withdraw elective deferrals and earnings from your retirement plan while employed by your institution but not working due to a disability.
- To qualify you must be totally and permanently disabled, and the deferrals and earnings must have been credited to your plan on or after January 1, 1989.
- Disability withdrawals are not subject to the 10% IRS penalty on withdrawals prior to age 59½.
Lifetime retirement income
- One-life annuity - provides income for as long as you live.
- Two-life annuity - provides lifetime income for you and an annuity partner (your spouse or someone else you name) for as long as either of you live.
- One- or two-life annuity with guaranteed period - guarantees income for up to 20 years, as long as the period you choose does not exceed your life expectancy. It ensures that income continues to go to your beneficiaries for the remainder of the guaranteed period if you (one-life annuity) or both you and your annuity partner (two-life annuity) die before the end of that period.
Single-sum death benefit
A set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
You can choose to receive income for a set period of two to 30 years, depending on the terms of our contract and your plan's rules (and not to exceed your life expectancy).
- Payments stop at the end of the period, during which you will have received all your principal and earnings.
You can receive the current interest earned on your TIAA Traditional Account in monthly payments. Your principal remains intact while you receive the interest.
- These payments generally are available to individuals between ages 55 and 71 and must begin at least one year prior to reaching age 72.
Retirement transition benefit
In order to more easily transition into retirement, you may be able to withdraw up to 10%, in cash, of your lifetime annuity income. The amount you withdraw will reduce your lifetime annuity income accordingly.
TPA to cash
If you need some of your retirement savings in cash, you can withdraw your TIAA Traditional Account balance through a Transfer Payout Annuity (TPA) under the terms of the contract. A lump-sum payment, subject to a surrender fee, may be available depending on your plan rules and the terms of your contract.
For more information about the terms of your individual contract, contact your plan sponsor or financial advisor.
Phased retirement has been introduced for the baby boom generation nearing retirement. Here are some things to keep in mind if you’re interested in a phased retirement:
- Under most phased retirement plans, the employee resigns their full-time position in return for the right to work half-time at half-salary for a given number of years.
- Many phased retirement plans benefit both the institution and the employee, giving you a way to work and still draw salary.
- Every institution may have different rules around phased retirement, so research all your options.
For more information, contact your plan sponsor or financial advisor.
A forced distribution allows a former employer to close retirement benefit accounts with a balance of less than $1,000 after you leave service. If your balance is higher than $1,000, you cannot be forced from the plan and you can leave your balance in it.
Additionally, retirement benefit accounts with a balance from $1,000 to $5,000 may be automatically rolled over to an IRA, unless you choose to take cash or make a different direct rollover.
Minimum distribution option
Generally, you must begin taking minimum withdrawals from your account by April 1 following the year in which you turn age 72 or retire, whichever is later.
If you're married, you may be required to get spousal consent to receive any distribution option other than a qualified joint and survivor annuity.
This plan is designed to provide you with income throughout your retirement. Leaving money in your account may allow the funds to grow on a tax-deferred basis.
This plan allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA contracts. Taxes and penalties may apply.