Friday, August 18, 2017
Effective July 1, 2017, Northern Michigan University will allow eligible employees to take an in-service withdrawal from the University-funded TIAA Retirement Plan if certain criteria are met. In-service withdrawals are permitted if you meet the criteria outlined below:
You must be 62 years of age or older and actively employed. In addition, your withdrawal request is limited to up to ten percent (10%) of your Basic Retirement Plan value (additional restrictions may apply).
You are permitted to take an in-service withdrawal one-time only.
Limitations May Apply:
You may be limited to requesting less than 10% of your portfolio depending on the contract types you are invested in. For example, all of the TIAA Traditional investments have certain limitations or restrictions.
If you are interested in utilizing the in-service withdrawal option, please contact TIAA’s National Contact Center at 800-842-2776. Consultants are available weekdays, 8 a.m. to 10 p.m., and Saturdays, 9 a.m. to 6 p.m. (ET). The Consultant will review which contract types you are invested in and assist you with processing your request.
The IRS requires TIAA to withhold 20% from the gross distribution of any lump-sum withdrawals. In addition, the state of Michigan may require TIAA to withhold an additional amount for state taxes. The distribution is taxable in the year the payment is made. The mandatory withholding does not apply if you roll the funds directly into your voluntary tax-deferred 403(b) retirement plan. Please consult with a tax advisor for guidance regarding your personal tax situation.
If you have questions, please contact Kristen Bjorne, Associate Director of Human Resources--Benefits, at email@example.com or call 227-1030.