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.
Plan participants have a variety of options available.
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.
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.
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.
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.
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.
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.