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Wake Forest University

Wake Forest University 403(B) Retirement Plan

Plan information

Wake Forest University offers this plan as part of workplace benefits. Now is a great time to understand what is offered - think about taking advantage of any opportunities to save and invest for the future.

Learn what plans allow eligible employees to do.

Wake Forest University may make contributions based on eligible years of service.
 
Tier Years of Service Contribution Percentage
Base Rate Less than or equal to 2 years 0% of regular salary
Tier 2 Greater than 2, but less than or equal to 5 years 5% of regular salary
Tier 3 Greater than 5, but less than or equal to 10 years 7.5% of regular salary
Tier 4 Greater than 10 years 10% of regular salary
 
Faculty and staff contributions are permitted up to the IRS limits, and can be made on a pre- or post-tax (Roth) basis immediately upon employment. New faculty and staff will be automatically enrolled in the Wake Forest University Retirement Plan, enabling you to begin contributing on a pre-tax basis immediately. You will be enrolled with a default contribution amount of 5% of your eligible pay. If you prefer to opt out, or if you want to change your contribution amount, you can do so via your TIAA online account or calling TIAA at 800-842-2776.
 
If you opt out within 30 days of your hire date, no contributions will be made. If you opt out after 30 days, the update will apply to the next payroll; any existing contributions will remain in your Retirement Plan account.
Faculty and staff who work at least 1,000 hours per year for two years may be eligible for Wake Forest University contributions.

Wake Forest University faculty and staff employed at another higher educational institution or a nonprofit research organization during the 24 months (1,000 hours per year) immediately preceding employment at Wake Forest University may be eligible for Wake Forest University contributions without a waiting period.
 
Reynolda House staff employed at a museum during the 24 months (1,000 hours per year) immediately preceding employment at Reynolda House may be eligible for Wake Forest University contributions without a waiting period.
No, all contributions will be 100% vested immediately.

LOANS

Loans are permitted from the Wake Forest University 403(B) Retirement Plan under the following circumstances:
  • Only loans from participant contributions/rollovers are eligible.
  • Up to three loans may be outstanding at any given time.
  • Account balance must be $2,222.22.
  • Must be an active faculty or staff member.
  • Minimum loan is $1,000, and maximum is $50,000.
  • Must repay the loan within 60 months of the issue date.
  • Loan requests can be only half of what is in the account, up to $50,000.
  • TIAA does not offer loans on Roth accumulations in 403(b)/401(k) plans.

DISTRIBUTIONS

Plan participants have a variety of options available.
 

Lump-sum distribution

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.
  • Withdrawals may be taken at age 59½ from your contributions.
  • Withdrawals may be taken at age 62 with 10 years of service, or at age 65 with 5 years of service, from Wake Forest University contributions.
Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking 10 annual payments under those terms.
 

Systematic withdrawals

If your plan allows, you can choose to receive regular income payments 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.
 

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.

Fixed period

You can choose to receive income for a set period of 2 to 30 years, depending on the terms of your 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.
 

Interest only

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 who have attained age 55 but have not yet reached RMD Applicable Age and must begin at least one year prior to reaching RMD Applicable age. 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.
 

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.
 

Single-sum death benefit

This benefit is a set amount your beneficiary(ies) will receive from your retirement account if you die before taking income.
 

Retirement transition benefit

In order to transition more easily 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

Plan participants can withdraw their TIAA Traditional Account accumulation through a Transfer Payout Annuity (TPA) in 7 or 10 approximately equal annual payments, depending on the type of contract. A lump-sum payment, subject to a surrender fee, may be available depending on plan rules and contract terms.
 
The Plan allows Plan participants to receive a cash withdrawal. This is restricted by the contract terms, and taxes and penalties may apply.
 

TAXATION

Earnings on contributions to a Retirement Choice account can grow tax deferred. The taxable income paid upon withdrawing funds depends on the type of contributions made.

If contributions are pretax, then withdrawals are fully taxable. If contributions are after tax (Roth), then withdrawals attributable to contributions and earnings are tax free. However, in order to receive the Roth earnings tax free, plan participants must be age 59½ and take the distribution no earlier than five years after the Roth contributions first were made, or become disabled. The payment of Roth accumulations will be on a pro-rata basis, including both contributions and earnings, as required by the Internal Revenue Code.
 
For either type of contribution, withdrawals before age 59½ generally are subject to a 10% early withdrawal penalty on the taxable portion of the amount received.
 
The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
 
GBR-3039742CO-Y0823W
 
Converting some or all of your savings to income benefits (referred to as "annuitization") is a permanent decision.  Once income benefit payments have begun, you are unable to change to another option.

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.

A Services Fee is assessed to certain investments and deducted on a Quarterly basis. Details related to Plan Services Fees assessed to plan investments are listed in your Quarterly Investment UpdateOpens in a new window.

Your Plan provides credits to certain investments on a Quarterly basis, so that plan participants share equally in the cost of your Plan's record keeping and other plan services.

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 Loans
$75 per loan initiated for general purpose
$125 per loan initiated for a residential loan

$25 annual loan maintenance fee per active loan, assessed Annually

Brokerage account

To learn more about the brokerage service including fees call 800-927-3059 or Get the BasicsOpens in a new window.

Qualified Domestic Relations Orders (QDRO)
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.

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