Effect of transferring TIAA IRA originating from 403(b) to different custodian

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  • #23259
    wanttoknow
    Participant

    I have a Roth IRA with TIAA that originated from a 403(b), and have the right to convert the IRA assets to tax-free annuity income. This type of IRA originating from a 403(b) is called an “Investment Solutions IRA” by TIAA.

    TIAA offers a variety of pay-out annuity income products. The annuity income originating from an “Investment Solutions IRA” is calculated at a higher rate than the other annuity products because the expense ratio is lower.

    I plan to convert my IRA to annuity income in 3-4 years, and in the meantime would like to invest it in a non-TIAA bond mutual fund.

    To get the mutual fund I want I might have to transfer the IRA to a different custodian.

    Would there be any problem in getting the IRA back into a TIAA “Investment Solutions IRA” 3-4 years later when I want to start getting the annuity income?

    If TIAA doesn’t then recognize that this is money that originated from the TIAA 403(b), then I won’t be able to get the most favorable annuity income benefit.

    #23558
    Alan S.
    Participant

    I have no idea, and no familiarity with TIAA, other than knowing they have their own proprietary rules and names for account types. But I think there is a good chance that a transfer out of TIAA would disqualify the funds for an “investment solutions account”. TIAA could probably give you an answer now, but would it be honored 3 years later? Is another bond mutual fund in today’s bond market worth taking the chance?

    #23643
    wanttoknow
    Participant

    Thanks, Alan.

    I was thinking about how if you transfer a Roth IRA from one custodian to another, and then years later back to the original custodian, the original custodian recognizes that it’s a Roth.

    So I was thinking that maybe TIAA would recognize that this is an IRA originating from a TIAA 403(b) that is coming back to them.

    But now I see that, even if they did, whether they would then make the most favorable annuity available is a separate matter.

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