With multiple accounts at TIAA, must RMDs come from each account?

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Topic Author
Sampan
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With multiple accounts at TIAA, must RMDs come from each account?

Post by Sampan »

I'm retired, with most of my retirement assets at TIAA, and I'm a few years away from having to take RMDs. I am not currently taking any withdrawals from those funds; I annuitized 20% of my total assets into lifetime income, and that plus SS and a working spouse's income take care of our regular expenses.

I have three accounts at TIAA:
  • GRA account from one prior employer - 56% of my total
  • GSRA account from the same prior employer - 16% of my total
  • RC account from a second employer - 28%
The fund allocations are different in each, based on what fund choices I have had from each.

When it comes time to do my RMDs, will I have to take proportional withdrawals from each of my accounts? Or can I pick and choose, depending on fund performance? (I am assuming I don't need to include the assets I annuitized in my RMD calculations since the annuity is taxed as regular income, but I can't say I am 100% sure of this.)

I have some fixed income funds in each of the accounts but the biggest amount is in my smallest account, the GSRA -- where I can have fully liquid Traditional funds. (The Traditional funds I had in my other accounts were already annuitized).

I would like to just make the GSRA 100% Traditional funds and that would more than take care of my total fixed income allocation; I could drop the bond funds in the other two accounts. But before I do that, it would be good to know where my RMDs would need to come from.
stlrick
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by stlrick »

At the current time, the IRS allows you to take all of your 403(b) RMDs from one accumulation, which is not allowed with IRAs or 401(k)s. There is no guarantee that this will remain the policy:

https://www.irs.gov/retirement-plans/rm ... tion-plans

As for TIAA, you cannot pick and choose RMDs from individual investments within a GRA, GSRA or RC. However, you can elect to take the total RMD required for all three contracts from one or two of them, if you choose. That does not mean that TIAA will make it easy to do so.

The payout from the annuitized assets are considered to be the required RMD for those funds.

Depending on your age at retirement, you may be required to take RMDs from the GRA and GSRA with your previous employer while you are still employed and therefore do not need to take them from the RC.
Topic Author
Sampan
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by Sampan »

stlrick wrote: Sun Mar 19, 2023 7:09 pm At the current time, the IRS allows you to take all of your 403(b) RMDs from one accumulation, which is not allowed with IRAs or 401(k)s. There is no guarantee that this will remain the policy:

https://www.irs.gov/retirement-plans/rm ... tion-plans

As for TIAA, you cannot pick and choose RMDs from individual investments within a GRA, GSRA or RC. However, you can elect to take the total RMD required for all three contracts from one or two of them, if you choose. That does not mean that TIAA will make it easy to do so.

The payout from the annuitized assets are considered to be the required RMD for those funds.

Depending on your age at retirement, you may be required to take RMDs from the GRA and GSRA with your previous employer while you are still employed and therefore do not need to take them from the RC.
Thank you for the clarification. I'm a bit confused, though, from the IRS document you linked. It says:

"If you have more than one defined contribution plan, you must calculate and satisfy your RMDs separately for each plan and withdraw that amount from that plan.

"Exception: If you have more than one 403(b) tax-sheltered annuity account, you can total the RMDs and then take them from any one (or more) of the tax-sheltered annuities."

Do the TIAA accounts fall under the exception: are they all considered 403(b) tax-sheltered annuity accounts?
stlrick
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by stlrick »

Ok. I assumed you were in a 403(b). It depends on your employer. You may have a 401(k). It's imperative that you know which one. Ask your former and current employer, or call TIAA and ask them.
Topic Author
Sampan
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by Sampan »

I am definitely in 403(b) plans, all college employers.
student
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by student »

If you have trouble arranging what you want, contact the representative assigned to your college.
Geologist
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by Geologist »

I think too you would do well to contact the representative assigned to your college. I have accounts that are 403(b)'s but I also have accounts that are 401(a)'s. (I can see this in the quarterly account statements, among other places.) I wouldn't know myself how these fit together in RMD requirements.
prd1982
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by prd1982 »

stlrick wrote: Sun Mar 19, 2023 7:09 pm At the current time, the IRS allows you to take all of your 403(b) RMDs from one accumulation, which is not allowed with IRAs or 401(k)s.
I believe that if you have multiple IRAs, you can take the RMD from one of the IRAs.
aristotelian
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by aristotelian »

Can you not consolidate them into one account?
Topic Author
Sampan
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by Sampan »

It's pretty clear to me that the GRA and GSRA accounts are 403(b) plans. I'm not 100% sure about the RC plan I have from the second employer. I'll have to check with the college or TIAA.
aristotelian wrote: Sun Mar 19, 2023 8:24 pm Can you not consolidate them into one account?
I'm no longer employed at any of the colleges, so I don't believe I can consolidate them into a single account. When I started working at the second institution, I did rollover a Fidelity account from the first college. I didn't consider doing the others because at the second college, the fund choices were more limited.

I know I have the option of consolidating all into an IRA but I'm not sure I want to do that. I've heard mixed opinions about that option. I would for sure lose the TIAA Traditional fund.
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22twain
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by 22twain »

stlrick wrote: Sun Mar 19, 2023 7:09 pm As for TIAA, you cannot pick and choose RMDs from individual investments within a GRA, GSRA or RC.
By this, do you mean that TIAA will not take the RMD automatically from individual investments that you pick and choose, so that you would have to take the distribution(s) "by hand" every year?

My TIAA accounts are all in TIAA Traditional (about 35%) and CREF Stock (about 65%). I'm still a few years from RMD age myself, but I'm currently figuring on taking my RMDs only from CREF Stock, at least for the first several years, so as to suppress future growth and RMDs in those accounts. I'm OK with doing this "by hand" if necessary, as long as I have the mental capacity for it. The calculation isn't that complicated.
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by crefwatch »

I see some virtue in TIAA being responsible for the amount and the work. What's actually wrong with proportional from all three accounts? That makes no change to your TIAA asset allocation. Do you have an IRA with your equity allocation? The IRA RMD is calculated separately anyway. I.e. non 403(b).

Illiquid TIAA Traditional is not a factor in the paragraph above.

I'm suggesting that you start simplifying your financial life at age 73 and reduce trading decisions, too.
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ResearchMed
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by ResearchMed »

22twain wrote: Mon Mar 20, 2023 12:09 am
stlrick wrote: Sun Mar 19, 2023 7:09 pm As for TIAA, you cannot pick and choose RMDs from individual investments within a GRA, GSRA or RC.
By this, do you mean that TIAA will not take the RMD automatically from individual investments that you pick and choose, so that you would have to take the distribution(s) "by hand" every year?

My TIAA accounts are all in TIAA Traditional (about 35%) and CREF Stock (about 65%). I'm still a few years from RMD age myself, but I'm currently figuring on taking my RMDs only from CREF Stock, at least for the first several years, so as to suppress future growth and RMDs in those accounts. I'm OK with doing this "by hand" if necessary, as long as I have the mental capacity for it. The calculation isn't that complicated.

At least for our Employer's 403b plan at TIAA, IF one wants TIAA to take RMDs automatically, they only do it proportionally, at least within a single plan. That is, they'll take the percent needed to be removed from each holding, e.g., Trad Ann (including the illiquid version), TREA, etc.

Or, we can manually or verbally specify how to select the money to be withdrawn as that year's RMD.

I don't know how multiple 403b accounts are handled by TIAA if it's automated.

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22twain
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by 22twain »

ResearchMed wrote: Mon Mar 20, 2023 6:49 am At least for our Employer's 403b plan at TIAA, IF one wants TIAA to take RMDs automatically, they only do it proportionally, at least within a single plan. That is, they'll take the percent needed to be removed from each holding, e.g., Trad Ann (including the illiquid version), TREA, etc.
That is in fact the way my wife does it, having started RMDs a few years ago before the age was raised from 70 to 73. Her total TIAA accumulation is about half of mine, CREF Stock is a smaller fraction of it, and she strongly values simplicity (not having to deal with it herself every year).

We currently don't need the extra income from annuitization, but we will re-consider that when/if our income needs change.
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dknightd
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by dknightd »

I'm slowly trying to figure out TIAA. Where most of our money is.
Honestly I don't think TIAA is better or worse than any other place. Like anything - pros and cons.
I'm trying to slowly keep our number of accounts down. To simplify things.
It is complicated, because some is subject to state tax, and some is not. And the available investments in each account are different.
It is tricky. And rules can change
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
ChrisMD
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Re: With multiple accounts at TIAA, must RMDs come from each account?

Post by ChrisMD »

stlrick wrote: Sun Mar 19, 2023 7:09 pm At the current time, the IRS allows you to take all of your 403(b) RMDs from one accumulation, which is not allowed with IRAs or 401(k)s. There is no guarantee that this will remain the policy:

https://www.irs.gov/retirement-plans/rm ... tion-plans
From the above IRS link:

If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA.
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