MDPS Annual RMD Letter - TIAA-CREF

Sally M. Geaney
Senior Managing Director,
Head of Participant Servicing
Dear Participant,
We’re writing to you about the IRS Required Minimum Distribution rules. Under these rules, you
may have to start withdrawing from your tax-deferred retirement accounts once you turn age 70½.
And, you generally have to continue withdrawing funds every year after that.
For more detailed information about how the minimum distribution rules may apply to you this
year, please review the frequently asked questions and answers on the following pages.
Note: If you know you’re already satisfying the requirement or know the rules do not apply to you
this year, you do not have to take any action.
We value your relationship with TIAA-CREF and look forward to helping you plan for—and live well
in—retirement.
Sincerely,
Sally M. Geaney
Senior Managing Director, Head of Participant Servicing
tiaa-cref.org
730 Third Avenue, New York, NY 10017-3206
Minimum distribution frequently asked questions
1. Who do the minimum distribution rules apply to?
They generally apply to anyone who is age 70½ or over in 2014. There may be an exception if you’re
still working.
2. When do I have to take a distribution?
You generally have to start distributions when you turn age 70½ or retire, whichever is later:
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If you turn age 70½ or retire (and you’re already age 70½ or over) in 2014, you have two choices. You
can take your first withdrawal (the amount required for 2014) in 2014. Or, you can wait and take it in
2015, as long as it is paid by April 1. However, if you wait until 2015 to take your first withdrawal, you’ll
have to take two withdrawals in that year—one for the amount required for 2014 and one for 2015—
which may increase your tax liability in 2015.
If you turned age 70½ before 2014, you need to take your minimum distribution by
December 31, 2014.
3. What if I’m age 70½ or over and still working?
As noted above, if you work past age 70½, you can delay withdrawing funds from your current
employer’s retirement plan until April 1 following the calendar year you retire.
4. What if I’m working and also have tax-deferred retirement accounts from previous employers?
You must satisfy the minimum distribution rule for those accounts each year, beginning when you reach
age 70½. You should verify your situation with your tax advisor. If your accounts from your previous
employer are with TIAA-CREF, a TIAA-CREF Consultant may be able to assist you.
5. Do I have to satisfy the Required Minimum Distribution rules for my IRAs?
Yes. You must take your Required Minimum Distribution from Traditional IRAs you own starting in the
year you turn age 70½ regardless of your employment status. However, minimum distribution rules don’t
apply to Roth IRAs during the owner’s lifetime, but will apply to the beneficiary that inherits the Roth IRA.
6. How much do I need to withdraw from my TIAA-CREF accounts?
Your Required Minimum Distribution for 2014 is based on two things: your age this year and your
account balance at the end of last year. (Since your age and account balance change every year, your
Required Minimum Distribution must be recalculated annually.) To find out the amount you’re required to
take for 2014, you can call us and a TIAA-CREF Consultant will assist you. You can also use our online
calculator at https://tools.tiaa-cref.org/mdo/. Remember, you’ll need your year-end balances as
of December 31, 2013, which are on your Quarterly Retirement Portfolio Statement.
Note: This calculation is for illustrative purposes only and must not be regarded as a promise, projection
or estimate of actual investment performance. The purpose is not to predict future returns, but to be
used as an educational tool. You should not rely on this tool as the sole source of minimum distribution
planning. Contact your tax advisor regarding the tax impact of any minimum distribution decision.
7. What do I do if I think I need to take a withdrawal?
You should contact us if you have never taken a minimum distribution and would like to begin, or if you’re
already withdrawing funds, but aren’t sure it’s enough to meet the IRS requirement.
When you contact us, a consultant will explain how the minimum distribution requirements apply to
you and your unique situation. We can help you develop a customized retirement income strategy that
helps you receive the required amount by the appropriate date. For example, we have withdrawal options
specifically designed to automatically calculate and pay you the minimum amount you’re required to
receive from your TIAA-CREF retirement accounts each year.
8. Where can I get more information about minimum distributions?
You can read our booklet Minimum Distribution: Making it Simple with TIAA-CREF, which is available
at www.tiaa-cref.org/rmd.
9. I have a small account balance at TIAA-CREF, what options do I have?
If your account balance is less than $5,000, you may be able to withdraw the entire amount; that way,
you won’t have to worry about satisfying the minimum distribution requirement for that account in the
future. Different rules apply to different accounts, so please contact us at 800 842-2252, Monday to
Friday, 8 a.m. to 10 p.m. (ET), and Saturday, 9 a.m. to 6 p.m. (ET) to find out if a full cash withdrawal is
available to you.
10. How do I set up withdrawals?
If you need help setting up your minimum distribution withdrawals, you should contact us at 800 842-2252. Our consultants are available Monday to Friday, 8 a.m. to 10 p.m. (ET), and Saturday, 9 a.m. to 6 p.m. (ET). Note: Please be sure to contact us two to three months before you must receive
your withdrawal.
11. What if I don’t take the required amount?
If you don’t comply with the IRS rules, you could be subject to a 50% excise tax on the amount you should
have taken, but did not.
12. If my annual Transfer Payout Annuity (TPA) payment is rolled over or directly transferred to an IRA or
other retirement plan, does this satisfy the Required Minimum Distribution rules?
No. Rollovers and direct transfers do not satisfy the IRS rules for Required Minimum Distribution. In
addition, taking a distribution from the IRA or retirement plan that received your TPA payment doesn’t
satisfy the IRS rules either.
If you have any questions or want to learn about other ways to satisfy the IRS Required Minimum
Distribution rules from your TPA, please call us at 800 842-2252 Monday to Friday, 8 a.m. to 10 p.m. (ET), and Saturday, 9 a.m. to 6 p.m. (ET).
Investment products are not FDIC insured, may lose value and are not bank guaranteed. You should consider the
investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log on
to www.tiaa-cref.org/prospectuses for a prospectus that contains this and other information. Please read the
prospectus carefully before investing.
TIAA-CREF Individual & institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities
products. Annuity products are issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
© 2014 Teachers Insurance and Annuity Association of America–College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017
141001901
328622_409606–MDPS
(02/14)

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