If a client's employer permits transfers from
its retirement plan, funds can be moved from TIAA-CREF directly to other
carriers.
A TIAA-CREF direct transfer authorization form must be completed. Because
there are varying retirement plan restrictions on the amount your client
is able to transfer -- and different transfer forms depending on institutional
and ERISA rules -- the best way for you or your client to request an external
transfer is to contact TIAA-CREF. We will check employer plan rules and
in some cases need to calculate the amount of funds eligible be moved.
External Transfers
Transfer-eligible funds invested in CREF can be transferred
in a single sum, regardless of contract type. Funds being transferred
from the TIAA Traditional Annuity under Retirement Annuity contracts are
paid out over a ten-year period through the Transfer Payout Annuity (TPA).
Under Group Retirement Annuity contracts, TIAA funds also must transferred
using the TPA while your client is still employed by the sponsoring institution.
If the client terminates employment, however, TIAA funds can be withdrawn
in a lump sum within 120 days of termination of employment upon payment
of a 2.5 percent surrender charge.
Tax-free rollovers are permitted between qualified plans, 403(b) plans, governmental 457(b) plans, and all IRAs. For rollovers to any account other than an IRA, contact the benefit office of the administrating institution for information about plan rules.
Employer Consent for Retirement Plan Money Transfers
If your client wants to transfer money from his/her
retirement plan, employer approval may be required, depending on the policy
established by the employing institution. The employing institution is
responsible for determining if direct transfers are available and to which
companies transfers can be made.
Specific Consent
If the institution chose specific consent, the employer
must complete the employee authorization section of the direct transfer
authorization form for every transfer that both current and former employees
make.
Blanket Consent
If the institution chose blanket consent, the employer
does not need to authorize individual requests.
If Your Client No Longer Works for the Employing Institution
Even if your client no longer works for the employing
institution, he/she may still be limited in transferring retirement plan
funds to another carrier.
How Long Does It Take?
The transfer should be complete within five business days after TIAA-CREF receives
all appropriate paperwork from you and/or your client, and the other carrier.
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