Annuity Choices for Withdrawing Retirement Accounts
I have a 403b account with funds in TIAA CREF. A third of these funds are Traditional TIAA Guaranteed and the remainder in various other TIAA and CREF funds, which include various types of equity funds and bond funds.
It is unclear to me now to do the annuitization. We appear to have three choices with ESPlanner. To designate that funds are to be annuitized as a fixed annuity or as a variable annuity with EITHER stock or bond options.
The TIAA Guaranteed would appear to be a fixed annuity with a guaranteed rate of return. The other components would be variable.
Which choice should I designate for the annuity?
RSS
HI, I REPLY IN CAPS BELOW. BEST, LARRY
I have a 403b account with funds in TIAA CREF. A third of these funds are Traditional TIAA Guaranteed and the remainder in various other TIAA and CREF funds, which include various types of equity funds and bond funds.
WRT THE TIAA-CREF TRADITIONAL, YOU COULD ENTER YOUR ONGOING CONTRIBUTIONS TO THAT ACCOUNT AS A SPECICAL EXPENDITURE THAT IS EXCLUDABLE FROM AGI AND ENTER THE ANNUITY THAT YOU EXPECT TO RECEIVE AS A TAXABLE SPECIAL RECEIPT. I.E., YOU WOULDN'T ENTER ANY OF THE ASSETS, CONTRIBUTIONS, OR WITHDRAWALS FROM THIS UNDER RETIREMENT ACCOUNTS. THE REST OF YOUR TIAA-CREF MONEY AND CONTRIBUTIONS WOULD THEN BE ENTERED UNDER RETIREMENT ACCOUNTS AND YOU COULD CHOOSE WHETHER TO ANNUITIZE THESE FUNDS AS WELL. CALL ME AT 617 834-2148 WITH ANY QUESTIONS.
It is unclear to me how to do the annuitization. We appear to have three choices with ESPlanner. To designate that funds are to be annuitized as a fixed annuity or as a variable annuity with EITHER stock or bond options.
The TIAA Guaranteed would appear to be a fixed annuity with a guaranteed rate of return. The other components would be variable.
Which choice should I designate for the annuity?
Thanks for the information aboaut how to handle the TIAA Traditional. The other question that I have relates to the withdrawinals for the variable annunity. I have segregated the Guaranteed funds out and put them in the Special area, as suggested and then left the other funds for various stock and bond funds in TIAA CREF as my Retirement Assets.
In the Monte Carlo tool, I have sorted out he ratio of stocks to bonds, which is about 50% stock funds (larg cap, small cap and international) and a range of types of bond funds (long and short term government bonds, corporate bonds and TIPS). I also have small allocations for REIT and for cash.
I have checked the radio button for stock. I am assuming that this would base the variable annunity all of these accruals. Is that correct?