Understanding investment fees
Your financial well-being is TIAA's top priority and we are committed to helping you make informed decisions. Fees should be just one factor in your decision-making process since the lowest cost option may not be the best one for you.
Cost of plan services
Fees and expenses have always been part of a retirement savings plan-some fees are associated with the administration of the plan and may be covered by your employer, while others are paid by you based on the specific investments and services you choose. The following three categories of services are provided to your plan:
1. General record keeping and other plan services
Over the course of a year you pay for services like record keeping.
Many services are necessary for the day-to-day operation of your employer's retirement plan. General administrative services include recordkeeping, legal, accounting, consulting, investment advisory and other plan administration services. Some of these expenses are fixed and other expenses may vary from year to year. These costs are allocated to each participant in a uniform way.
An annual TIAA Plan Servicing Fee of $40 is assessed if you maintain a Retirement Choice and/or Retirement Choice Plus account. This fee will be deducted proportionally from each investment in your account Quarterly and identified as "TIAA Plan Servicing Fee" on your statements.
In some cases, an investment provider may pay a portion of an investment's expense ratio to TIAA, the recordkeeper, to help offset the cost of plan administration. This practice is called "revenue sharing". If you have investments that revenue share, you'll receive a credit based on your average daily balance. This will be identified as "TIAA Plan Servicing Credit" on your statements.
If you do not maintain a Retirement Choice and/or Retirement Choice Plus account and therefore no TIAA Plan Servicing Fee was assessed, your investment revenue share credit will be reduced by the amount of the fee inorder to cover plan administrative services expenses. For more information on fees and investments, refer to "Mutual Funds and In-Plan Annuities" via TIAA.org/performanceOpens in a new window.
2. Specific investment services
You pay only for what you use.
Each investment offered within the plan charges a fee for managing the investment and for associated services. But you pay only for the investments you actually use and in proportion to the amount of your investment. These fees are not deducted directly from your account; they are paid indirectly through the investment's "expense ratio". The specific expense ratio for each plan designated investment option is listed in your Quarterly Investment UpdateOpens in a new window
3. Personalized services
You can opt for extra features, like loan services.
Personalized services provide access to a number of plan features and investments that you pay for, only if you use them. The personalized services used most often are:
Retirement Plan Portfolio Manager is an optional service for professional account management.
Retirement Plan Portfolio Manager provides investment advice on your retirement portfolio based on your goals and needs. This managed account is an optional service with professional oversight and a systematic, disciplined approach to managing your money.
For an annual fee of 30 basis points, which will be deducted from your account on a quarterly basis, your portfolio is reviewed and adjusted as needed to help keep it on track. Features include:
Qualified Domestic Relations Orders (QDRO)
- Customized advice - Based on your goals, we'll help you decide how much to save, an appropriate asset mix and specific investment options.
- Ongoing portfolio oversight - We'll make adjustments based on market conditions and other factors that may affect your investments. These adjustments include quarterly asset reallocation and rebalancing.
- Modify direction as needed - You can update your preferences anytime and we'll fine-tune our recommendations.
- Quarterly statements - Show adjustments made to your portfolio so you can see your current investment mix.
No additional charge
Sales charges, purchase, withdrawal and redemption fees for certain investments
Certain charges may apply. For additional information, see Quarterly Investment UpdateOpens in a new window
In addition, for more information on fees and investments, refer to "Mutual Funds and In-Plan Annuities" via TIAA.org/performanceOpens in a new window which is a good source for additional plan and investment-related information.
More information about retirement plan fees and expenses is available at TIAA.org/fees.