Actions to take when you are already invested in a 403(b).
Accessing Your Savings

Accessing Your Savings

Your Vested Account is the percentage of your account to which are entitled at any point in time. You are always 100% vested in your Elective Deferrals (money you contributed).

You are vested in employer contributed money after three years of employment.

You are entitled to 100% of your account upon reaching Normal Retirement Age. Normal Retirement Age under this Plan is age 65. Your account will be distributed as soon as administratively feasible after you terminate employment. Your account will be distributed in a lump sum, or if you desire, paid to any eligible retirement account you designate.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

See Tax Withholding on Distributions.

If you terminate employment because you become disabled, you are entitled to your Vested Account. In order to be considered disabled for Plan purposes, you must suffer a physical or mental condition that qualifies you for disability benefits under the Social Security Act. Your account will be distributed as soon as administratively feasible after you terminate employment. Your account will be distributed in a lump sum, or if you desire, paid to any eligible retirement account you designate.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

See Tax Withholding on Distributions.

Upon your death, your beneficiary is entitled to your Vested Account. Your death benefit will be distributed to your beneficiary as soon as administratively feasible.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

See Tax Withholding on Distributions.

If you terminate employment before Normal Retirement Age (age 65 under the Bosque School Defined Contribution Retirement Plan), or before death or disability, you are entitled to your Vested Account. Your account will be distributed as soon as administratively feasible after you terminate employment. Your Vested Account will be distributed in a lump sum which can be paid to you or, at your election, paid directly to any eligible account you designate — either to another qualified retirement plan which agrees to receive the distribution or to an Individual Retirement Account.

If you withdraw assets prior to age 59½, the IRS will impose a 10 percent penalty tax on the amount to be included in your taxable income in addition to the normal tax consequences, unless you meet one of the following criteria:

  • You attain age 55 during or after the year in which you retire. This exception is permitted by §72(t)(2)(A)(v). See irs.gov for more information.
  • Retire before age 55 and arrange a schedule of Substantially Equal Periodic Payments (SEPP). The payments are based on an IRS formula and must continue for 5 years or until the individual reaches age 59½, whichever takes longer. This exception is permitted by §72(t)(2)(A)(iv). See irs.gov for more information.
  • Separate from service and move money to a tax-favored account such as another employers plan or a Rollover IRA
  • Disability
  • Divorce
  • Death
  • Made to an employee for medical care to the extent you have deductible medical expenses (medical expenses that exceed 7½% of your adjusted gross income), whether or not you itemize your deductions for the year.

If you do not meet any of these exceptions, the simplest way to avoid penalty is to move the money into a new employer's plan (if permitted — check with new employer before taking a withdrawal), or by rolling this money into a Rollover IRA with the financial institution of your choice. Both of these procedures will protect the tax favored status of your money and allow you to avoid any penalty. If you wish to move the money into a Rollover IRA, contact the financial firm of your choice before terminating employment. They should be able to provide information on how to perform a Rollover IRA transfer.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

See Tax Withholding on Distributions.

To the extent permitted by the Funding Vehicle (your investment choice), you can withdraw up to 100% of your Elective Deferrals and up to 100% of your Vested Employer Contributions to pay for a financial hardship caused by:

  • eligible medical expenses incurred by you our your family
  • the purchase (excluding mortgage payments) of your principal residence
  • tuition for the next 12 months of college for you or your family
  • payments needed to prevent eviction, or foreclosure on the mortgage of, your principal residence
  • funeral expenses for your deceased parent, spouse, children, or eligible dependents
  • eligible expenses for repair of damage to your principal residence

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

Note: You are not permitted to make an Elective Deferral for 6 months after you receive a distribution.

To the extent permitted by the Funding Vehicle (your investment choice), you can withdraw up to 100% of your Elective Deferrals from the Plan when you reach age 59-1/2 (even if you have not terminated employment). You can also withdraw up to 100% of Vested Employer Contributions if you have reached age 59-1/2.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

Note: In-service distributions can only be taken in a lump sum.

To the extent permitted by the Funding Vehicle (your investment choice), you are permitted to borrow from the Plan with the approval of the Administrator. All loans will be made in accordance with the Loan Policy established by the Administrator.

To make a withdrawal contact TIAA-CREF at 800-842-2252, Monday to Friday, 8am to 10pm EST and 9am to 6pm Saturdays.

Due to the complexity and frequency of changes in the federal laws that govern benefit distributions, penalties and taxes, the following is only a brief explanation of the applicable law and IRS rules and regulations as of the date this summary is issued. You will receive additional information from the Administrator at the time of any benefit distribution, and you should consult your tax advisor to determine your personal tax situation before taking any distribution from the Plan.

Direct Rollovers Not Subject to Tax

Any distribution from this Plan that is eligible to be rolled over and that is directly transferred to another eligible retirement account (either another qualified retirement plan or an individual retirement account) is not subject to income tax withholding. Generally, any part of a distribution from this Plan can be rolled over to another eligible retirement account if the distribution:

  1. is part of a series of equal periodic payments made over your lifetime, or over the lifetime of you and your beneficiary, or over a period of 10 years or more; or
  2. is a minimum benefit payment which must be paid to you because you have reached age 70. There are other distributions that are not eligible for direct rollover treatment, and you should contact the Administrator if you have questions about whether a particular distribution can be rolled over.

20% Withholding on Taxable Distributions

If you have your benefit paid to you and it's eligible to be rolled over, you only receive 80% of the benefit payment. The Administrator is required by law to withhold 20% of the benefit payment and remit it to the Internal Revenue Service as income tax withholding to be credited against your taxes. If you receive the distribution before you reach age 59-1/2, you may also have to pay an additional 10% tax. You can still rollover all or a part of the 80% distribution that is paid to you by putting it into an IRA or into another qualified retirement plan within 60 days of receiving it. If you want to rollover 100% of the eligible distribution to an IRA or to another qualified retirement plan, you must find other money to replace the 20% that was withheld. You cannot elect out of the 20% withholding unless:

  1. you are permitted (and elect) to leave your benefit in this Plan, or
  2. unless you have 100% of an eligible distribution transferred directly to an IRA or to another qualified retirement plan that accepts rollover contributions.