Making Withdrawals on Your Accounts

The Supplemental Retirement and Savings Plan is intended to provide long-term savings opportunities for your retirement years. However, while you are employed, there may be circumstances in which you will need to make a withdrawal for other important financial needs.

The Internal Revenue Service places restrictions on withdrawals. You may not withdraw post-1988 contributions while still employed by Boston University unless you:

• reach age 59½; or
• are able to prove financial hardship.

Post-1988 earnings are not available for withdrawal while you are working at Boston University until you reach age 59½.

For purposes of making withdrawals under the plan, the IRS defines financial hardship as the need for funds to meet certain immediate and heavy expenses. Funds must not be reasonably available from other sources. Federal withdrawal rules limit hardship withdrawals to needs such as:

• The purchase price of a primary residence,
• Higher education expenses for you or your dependents,
• Major, uninsured medical expenses for you or your dependents, or
• Expenses to prevent eviction or mortgage foreclosure.

Boston University must abide by these rules in considering requests for hardship withdrawals.

You may withdraw contributions credited to your TIAA/CREF Group SRA account prior to January 1, 1989 and related earnings, at any time.

Withdrawals are paid as a lump sum in cash. To make a withdrawal, you must complete and submit the appropriate withdrawal form. These forms are available from TIAA/CREF. You may start making withdrawals or start receiving installment or annuity payments from the plan once you reach age fifty-ine and one-half even though you are still employed at Boston University.

Please note: In general, if you are under age 59½ when you make an in-service withdrawal, unless an exception applies, your money will be subject to a 10% penalty tax, in addition to regular income tax, if applicable. Also, you may not contribute to the account for a one-year period from the date of your withdrawal.