Navigating Your Future: A Guide to Brown Alumni Association Benefits
The Brown Alumni Association offers a range of benefits designed to support alumni in various aspects of their lives. This article focuses on retirement savings and loan options available to Brown University employees as well as withdrawal options. It aims to provide a comprehensive overview, enabling alumni to make informed decisions about their financial futures.
Loan Options
Loans are available, with amounts ranging from $1,000 to $50,000 from each employer where you are eligible. The amount you can borrow depends on factors such as the current amount in your plan eligible for loans and any other outstanding loans you may have.
Maximizing Loan Potential
If you have funds in other employer's plans, you might be able to transfer or roll them over to the Brown University retirement plan. This strategy could potentially increase your maximum loan amount. However, it's important to consider all options before making a decision. You may also be able to leave money in your current plan, withdraw cash, or roll over the money to an IRA.
Important Note: TIAA does not offer loans on Roth accumulations within 403(b)/401(k) plans.
Retirement Savings Withdrawal Options
When you leave your employer, you may be eligible to withdraw your retirement savings. It's important to understand the different withdrawal options available to you, as well as the potential implications of each. Your plan may distribute your entire balance if the value does not exceed $2,000.
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Annuity Options
One- or Two-Life Annuity with Guaranteed Period: This option guarantees income for a specified period (up to 20 years), provided that the chosen period does not exceed your life expectancy.
Current Interest Payments: You can receive the current interest earned on your TIAA Traditional Account in monthly payments. These payments are generally available to individuals who have attained age 55 but have not yet reached their Required Minimum Distribution (RMD) Applicable Age, and must begin at least one year prior to reaching RMD Applicable Age.
- Note on 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.
Transitioning into Retirement
To ease the transition into retirement, you may have the option to withdraw up to 10% of your lifetime annuity income in cash.
Transfer Payout Annuity (TPA)
If you require a portion of your retirement savings in cash, you can withdraw your TIAA Traditional Account balance through a Transfer Payout Annuity (TPA), subject to the terms of your contract. Before choosing this option, consider your other alternatives, such as leaving the money in your current plan or withdrawing cash.
Direct Rollovers
Direct rollovers involve transferring funds directly from one account to another. These rollovers are non-taxable and are not reported as income to the federal government.
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Required Minimum Distributions (RMDs)
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.
- Note on 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.
Cash Withdrawals
This plan allows you to receive a cash withdrawal. However, this may be restricted by the terms of your TIAA contracts. Your right to a lump-sum distribution from your TIAA Traditional Account may be restricted to taking periodic payments under the terms of the contract. If your plan allows, you can choose to receive regular income payments on a semimonthly, monthly, quarterly, semiannual or annual basis.
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