Making Withdrawals on Your Accounts
The Supplemental Retirement & 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 your primary residence
- Higher education expenses for you or your dependents
- Major, uninsured medical expenses for you or your dependents
- Expenses to prevent eviction from your primary residence, or mortgage foreclosure
- Funeral expenses for your parents, spouse, children, or other tax dependent
- Expenses for the repair of your primary residence that would qualify for casualty deduction under federal tax rules (but without regard to the 10% limit)
Boston University must abide by these rules in considering requests for hardship withdrawals.
You may withdraw contributions credited to your TIAA 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, available from Fidelity and TIAA. You may start making withdrawals or start receiving installment or annuity payments from the plan once you reach age 59½, 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.