Post by Admin/YBB on Jul 3, 2023 15:41:03 GMT -6
TIAA Annuitization - An Insight
I was checking the details of my new TIAA 403b. All related documents go into the accumulation phase and only mention that annuitization is possible - but no further details on annuitization.
I then read TIAA "Income Change Document" AGAIN (I have done it many times before, fully or partially, but this reading was with another angle), and I couldn't find a single reference to "employer" or "group", and only 1 reference to (employer) "plan" in the context of the recent Test Drive program*; there are 3 generic references to plan as in planning, plan ahead, revise...plan. So, the VA choices in this document are discussed only with choice restrictions dictated by whether the income-source money originated from Traditional or TIAA/CREF VAs.
You know how irritating it can be to read many TIAA documents with the proviso that "if your plan allows.....". But none of that in this Document and things on this reading became refreshingly clear.
Are you getting this? It looks to me that once you annuitize, the money may be considered out of the employer plan and only the TIAA rules apply as to what can be done.
It then isn't a stretch to use this notion at the time of annuitization, i.e. the money that you are annuitizing may be considered out of the employer plan and may be used in whatever way that the TIAA allows.
*Test Drive lets you try out annuitization with smaller amounts for 2 years before making a final commitment. If you don't cancel within 2 years, your entire account is irrevocably annuitized. During the Test Drive, only the annuity options available in your employer plan can be used (Traditional, VAs).
Annuity Income Change www.tiaa.org/public/pdf/h/How-to-make-changes-to-annuity-income.pdf
New Test Drive Program www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/income-test-drive
I was checking the details of my new TIAA 403b. All related documents go into the accumulation phase and only mention that annuitization is possible - but no further details on annuitization.
I then read TIAA "Income Change Document" AGAIN (I have done it many times before, fully or partially, but this reading was with another angle), and I couldn't find a single reference to "employer" or "group", and only 1 reference to (employer) "plan" in the context of the recent Test Drive program*; there are 3 generic references to plan as in planning, plan ahead, revise...plan. So, the VA choices in this document are discussed only with choice restrictions dictated by whether the income-source money originated from Traditional or TIAA/CREF VAs.
You know how irritating it can be to read many TIAA documents with the proviso that "if your plan allows.....". But none of that in this Document and things on this reading became refreshingly clear.
Are you getting this? It looks to me that once you annuitize, the money may be considered out of the employer plan and only the TIAA rules apply as to what can be done.
It then isn't a stretch to use this notion at the time of annuitization, i.e. the money that you are annuitizing may be considered out of the employer plan and may be used in whatever way that the TIAA allows.
*Test Drive lets you try out annuitization with smaller amounts for 2 years before making a final commitment. If you don't cancel within 2 years, your entire account is irrevocably annuitized. During the Test Drive, only the annuity options available in your employer plan can be used (Traditional, VAs).
Annuity Income Change www.tiaa.org/public/pdf/h/How-to-make-changes-to-annuity-income.pdf
New Test Drive Program www.tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/income-test-drive
