457(b) Deferred Compensation Plan 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 800-842-2252.
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).
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.
To withdraw money for an emergency with a 457(b) plan requires you to meet the rules for an Unforeseeable Emergency withdrawal. The IRS defines an unforeseeable emergency as a severe financial hardship to the participant or beneficiary resulting from, but not limited to:
- A sudden and unexpected illness or accident of the participant, a beneficiary, or the participant’s or beneficiary’s spouse or dependent.
- Loss of the participant’s or beneficiary’s property due to casualty.
- Imminent foreclosure or eviction from the participant’s or beneficiary’s primary residence
- Medical expenses, including non-refundable deductibles and the cost of prescription drug medication
- Funeral expenses of a spouse or dependent
- Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant or beneficiary.
Please note that an unforeseeable emergency does not typically include the purchase of a home or payment of college tuition.
Generally, withdrawals are permitted if the hardship can’t be solved:
- Through reimbursement or compensation from insurance or otherwise;
- By liquidating or accessing personal assets including those associated with freely distributable amounts held in retirement and tax-sheltered savings plans (to the extent this would not itself cause a severe financial hardship); or
- By stopping deferrals under the plan.
457(b) In-service, non-hardship employee withdrawals
Some companies will allow active employees participating in a qualified employer retirement plan to withdraw a portion of their plan’s account balance upon request, without demonstrating a specific financial need - it’s called an “in-service withdrawal” or an “in-service distribution.” In service means you are still working for the employer sponsoring the plan.
When considering an in-service withdrawal, keep in mind:
- You may be able to roll the money over to another IRA or qualified plan or annuity without tax penalty, if you do so within 60 days.
- The in-service rule usually only allows payment of the employee’s money, but if you are terminated, you may be eligible for some matching funds.
For plans with balances of $5,000 or less, the following must be true in order to make 457(b) In-service withdrawals:
- You must still be employed
- You must not have made contributions within the last 24 months
- You must not have made this type of withdrawal request before
Please note that 457(b) In-service withdrawals may not always be at the discretion of the employer or specific to this plan.
Minimum distribution option
You must begin taking minimum distributions from your IRAs and employer retirement plan accounts by your required beginning date (or retirement, if later for employer retirement plan accounts). For IRAs (other than Roth IRAs), your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age. For employer-sponsored retirement plans, your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age or retire from the plan sponsor, if later.
Your RMD Applicable Age was 70 ½ if you were born before 7/1/49; 72 if you were born on or after 7/1/49 or in 1950; 73 if you were born between 1951 and 1958; 75 if you were born in 1960 or later. If you were born in 1959, federal guidance is needed to determine if your RMD Applicable Age is 73 or 75.
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 allows you to receive a cash withdrawal. This may be restricted by the terms of your TIAA contracts. Taxes and penalties may apply.