Getting money out of your TIAA account can seem like a daunting task, given the various account types, withdrawal rules, and tax implications. But don't worry, we're here to guide you through it! Whether you're nearing retirement, facing an unexpected expense, or simply looking to manage your funds, understanding the process is key.
Ready to unlock your TIAA savings? Let's dive in!
Step 1: Understand Your TIAA Account(s)
Before you can withdraw money, it's crucial to know what kind of TIAA account(s) you have. TIAA offers a variety of retirement and investment products, and the rules for withdrawal can differ significantly between them.
1.1 Identify Your Account Type
Log in to your TIAA account at TIAA.org. Once logged in, navigate to your account summary or statements. Look for account names like:
TIAA Traditional Annuity: This is a fixed annuity known for its guarantees on principal and a minimum interest rate. Withdrawals from this type of account often have specific rules, including installment payments or surrender charges depending on the contract type and when you withdraw.
CREF Accounts (College Retirement Equities Fund): These are variable annuities with investment options similar to mutual funds. Withdrawal rules here might be more flexible than TIAA Traditional.
Employer-Sponsored Retirement Plans (e.g., 403(b), 401(k)): These plans are often set up through your employer and have rules governed by both IRS regulations and your specific plan's provisions. You may need employer authorization for withdrawals.
IRAs (Individual Retirement Accounts): This could be a Traditional IRA, Roth IRA, or SEP IRA. The tax implications and withdrawal penalties vary greatly depending on the type of IRA and your age.
Mutual Funds/Brokerage Accounts: These are generally more liquid and offer more straightforward withdrawal processes compared to annuities.
1.2 Review Your Plan's Specific Rules
This is an incredibly important step. Each employer-sponsored plan has its own unique rules regarding when you can withdraw funds and under what conditions.
Online Access: On TIAA.org, under the "Actions" tab, look for "View available loans & withdrawals" or "View loans/withdrawals details." This can provide specific information for your employer-sponsored plan.
Contact Your Employer's Benefits Office: For employer-sponsored plans, your HR or benefits department is a primary resource. They can clarify eligibility, required authorizations, and any plan-specific restrictions.
Check Your Contract/Plan Documents: TIAA provides detailed contract information. Refer to these documents for the fine print on withdrawals, especially for annuities.
Step 2: Determine Your Withdrawal Eligibility and Purpose
Your ability to withdraw funds and the consequences of doing so heavily depend on your age and the reason for the withdrawal.
2.1 Age and Retirement Status
Age 59 ½ and Older: Generally, withdrawals from most retirement accounts after this age are penalty-free at the federal level. You will still owe ordinary income tax on pre-tax contributions and earnings.
Under Age 59 ½ (Early Withdrawals): Be prepared for a potential 10% federal early withdrawal penalty, in addition to ordinary income tax on the withdrawn amount. There are exceptions to this penalty (e.g., disability, certain medical expenses, qualified higher education expenses, first-time home purchase (up to $10,000), substantial equal periodic payments (SEPP), and separation from service in or after the year you turn 55 for certain employer plans).
Required Minimum Distributions (RMDs): If you have a Traditional IRA or an employer-sponsored plan (like a 403(b)) and are past a certain age (currently 73, though it varies based on your birth year), the IRS requires you to start taking distributions. TIAA can help set these up automatically. Roth IRAs do not have RMDs for the original owner.
2.2 Purpose of Withdrawal
Retirement Income: If you're retiring, you might opt for systematic withdrawals, annuitization (converting a portion of your savings into guaranteed lifetime income), or lump-sum withdrawals.
Emergency/Hardship: Some plans allow hardship withdrawals for immediate and heavy financial needs (e.g., medical expenses, preventing eviction/foreclosure, funeral expenses). These are subject to strict IRS criteria and usually require documentation. Be aware: Hardship withdrawals are generally taxable and may incur the 10% early withdrawal penalty if you're under 59 ½.
Loan: Some employer-sponsored plans might allow you to take a loan against your retirement savings, which you repay with interest. This avoids taxes and penalties if repaid as per the terms.
Rollover: If you're changing jobs or consolidating accounts, you might roll over your TIAA funds into another qualified retirement account (like a new employer's plan or an IRA) to maintain tax-deferred status. This isn't a "withdrawal" in the sense of taking cash but a transfer.
Step 3: Gather Necessary Information and Documentation
Having everything ready will significantly speed up the process.
3.1 Personal and Account Information
TIAA Account Number(s): Found on your statements or by logging in online.
Social Security Number/Taxpayer Identification Number.
Valid Photo ID: For identity verification.
Bank Account Information: If you want direct deposit (routing number and account number). Have a voided check or a bank letter ready if this is a new bank account for TIAA.
Current Address on File: If you've recently changed your address, there might be a waiting period (e.g., 14 days) or a requirement for a bank letter before you can receive a check by mail.
3.2 Specific Documentation (if applicable)
Spousal Consent/Waiver: For some employer-sponsored plans (especially those subject to ERISA rules), your spouse may need to consent to the withdrawal, often requiring a notarized signature. TIAA has partnered with services like Proof.com for digital notarization.
Employer Authorization: For many employer-sponsored plans, you'll need your employer's authorization (often from the benefits office) to initiate a withdrawal. This might involve a specific form they need to sign.
Hardship Documentation: If requesting a hardship withdrawal, you'll need documentation to prove the financial need (e.g., medical bills, eviction notices, foreclosure letters). The amount you can withdraw is typically limited to the documented need.
Death Certificate/Beneficiary Information: If withdrawing as a beneficiary.
Step 4: Choose Your Withdrawal Method
TIAA offers several ways to request withdrawals.
4.1 Online Withdrawal
Availability: For many account types, especially IRAs, mutual funds, and some employer-sponsored plans, you can initiate a withdrawal online.
Process:
Log in to your TIAA account at TIAA.org.
Click on the "ACTIONS" tab.
Select "View available loans & withdrawals" or "View loans/withdrawals details."
Follow the prompts to select the account, amount, and distribution method (direct deposit or check).
If direct deposit is chosen and you have bank information on file, the process can be quite fast. If it's a new bank account, you might need to upload a voided check or bank letter.
4.2 Phone Request
General Inquiries & Assistance: For complex situations, questions about specific contract types (like TIAA Traditional), or if online withdrawal isn't an option, calling TIAA is recommended.
Phone Number: Call TIAA at 800-842-2252 (weekdays, 8 a.m. – 10 p.m. ET).
Be Prepared: Have your account information and any specific questions ready.
4.3 Mail/Fax Request
Forms: TIAA provides various withdrawal forms on its website (TIAA.org/forms). Search for "forms to take money out."
Types of Forms You Might Need:
Cash Withdrawal Form
Transfer Payout Annuity Form (for TIAA Traditional annuity installment payments)
Request for Hardship Withdrawal Form
Rollover/Transfer Forms
Mailing Address:
Standard Mail: TIAA, P.O. Box 1259, Charlotte, NC 28201
Overnight/Urgent Mail: TIAA, 8500 Andrew Carnegie Blvd, Charlotte, NC 28262
Fax: 800-914-8922 (within U.S.). Note: Some documents, like original voided checks or bank letters, cannot be faxed and need to be mailed or uploaded online. Also, beneficiary designations, name-change forms, and authorized rollover forms generally cannot be faxed.
Step 5: Understand Tax Implications and Withholding
This is a critical step to avoid surprises. Withdrawals from pre-tax retirement accounts are generally taxable as ordinary income.
5.1 Federal Income Tax
Pre-tax Accounts (e.g., Traditional 403(b), 401(k), Traditional IRA): All withdrawals are subject to federal income tax.
Roth Accounts (e.g., Roth 403(b), Roth IRA): Qualified withdrawals (account open for at least 5 years AND you are 59 ½ or older, disabled, or deceased) are generally tax-free. Non-qualified withdrawals of earnings are taxable and may be subject to the 10% penalty.
Withholding: TIAA is required to withhold 20% for federal taxes on non-rollover withdrawals unless you elect otherwise. You can specify a different withholding amount or elect for no withholding if eligible. Be sure to consider your full tax situation.
5.2 State Income Tax
State income tax rules vary. Some states do not tax retirement income, while others do.
TIAA may be required to withhold state income tax, or you may be able to elect your preferred withholding.
5.3 Potential Penalties
Early Withdrawal Penalty (10% federal): As discussed, applies if you withdraw before age 59 ½, unless an exception applies.
Missing RMD Penalty: If you are required to take RMDs and fail to do so, there's a hefty penalty (currently 25%, potentially reducible to 10% if corrected promptly) on the amount you failed to withdraw.
5.4 Seek Professional Advice
It is highly recommended to consult a tax advisor or financial planner before making a significant withdrawal. They can help you understand the full tax impact and strategize the most tax-efficient way to access your funds.
Step 6: Follow Up and Monitor Your Request
After submitting your withdrawal request, it's important to keep track of its status.
6.1 Check Status Online
Log in to TIAA.org.
Go to the "ACTIONS" tab.
Select "View loans/withdrawals details" to track your request.
6.2 Processing Time
Online/Direct Deposit: For funds to an existing bank account, you may receive funds within 2 business days once TIAA has all approvals and documentation.
Checks: Mailed checks can take 8-10 business days to arrive via standard U.S. Mail.
Hardship Withdrawals: These often require additional review and documentation, so the entire process can take 3-4 weeks.
Complex Cases: If your request involves spousal waivers, employer authorization, or transfer payout annuities, it may take longer. TIAA generally advises contacting them two to three months before you absolutely need the funds, especially for critical deadlines.
6.3 Address Any Issues Promptly
If TIAA requires additional information or finds an issue with your request (e.g., missing signature, incorrect form, incomplete documentation), they will notify you. Respond promptly to avoid further delays.
10 Related FAQ Questions
How to initiate an online cash withdrawal from TIAA?
To initiate an online cash withdrawal, log in to your account at TIAA.org, click on the ACTIONS tab, and then select View available loans & withdrawals. Follow the prompts to complete your request.
How to check the status of a TIAA withdrawal request?
You can check the status of your withdrawal request by logging in to your TIAA account at TIAA.org, clicking on the ACTIONS tab, and selecting View loans/withdrawals details.
How to avoid early withdrawal penalties from TIAA?
To avoid the 10% federal early withdrawal penalty, generally, you should wait until you are age 59 ½ or qualify for an IRS exception (e.g., disability, separation from service at age 55 or later for certain plans, specific medical expenses, or a valid hardship withdrawal if your plan allows and meets IRS criteria).
How to roll over TIAA funds to another retirement account?
You can initiate a rollover by contacting TIAA directly, often by phone, or by finding the appropriate rollover forms on TIAA.org under "forms to take money out." You'll need information about the receiving institution.
How to get a check for my TIAA withdrawal instead of direct deposit?
When requesting a withdrawal online or via a form, you will typically have the option to choose between direct deposit and receiving a check by mail. If your bank information is not on file, a check will usually be sent to your address of record.
How to complete a spousal waiver for TIAA withdrawals?
If required by your plan, spousal waivers must usually be signed by your spouse in front of a notary or a designated plan representative. TIAA has partnered with digital notarization services like Proof.com to facilitate this process, or you can print the form and have it notarized traditionally.
How to determine if my employer's authorization is needed for a TIAA withdrawal?
The need for employer authorization depends on your specific employer-sponsored plan rules. Contact your employer's benefits office or log in to your TIAA account to view your plan's specific withdrawal requirements.
How to receive Required Minimum Distributions (RMDs) from TIAA?
TIAA can help you set up automatic RMDs. Contact TIAA to let them know you want to automatically receive your RMDs, and they will calculate and pay the minimum amount required by the IRS from your tax-deferred accounts.
How to find withdrawal forms on the TIAA website?
You can find various withdrawal forms on the TIAA website by navigating to TIAA.org/forms and looking under the "Take money out" category, or by using the search function for specific forms like "Cash Withdrawal Form."
How to contact TIAA for assistance with withdrawals?
For general questions or assistance with withdrawals, you can call TIAA directly at 800-842-2252 on weekdays from 8 a.m. to 10 p.m. (ET). You can also schedule an appointment with a TIAA investment professional.