Distributions from Your NYU Retirement Plan, Supplemental Tax Deferred Annuity Plan, and NYU Section 457(b) Deferred Compensation Plan
Once you retire, you can receive income from the NYU Retirement Plan and Supplemental Tax Deferred Annuity (STDA) Plan at any time. For the NYU Section 457(b) Deferred Compensation Plan, your first option to receive a distribution will be on or about the 90th day following your date of termination. For the NYU Retirement, STDA, and 457(b) plans, you can elect immediate payment in a single sum, make partial withdrawals, or choose an annuity. You may also delay receiving any form of benefit until April 1 of the year following the calendar year you turn age 72.
When your employment ends, you have several options for the NYU Retirement and STDA plans:
- You may keep your accounts invested through the plans. You will continue to enjoy the investment options currently available, and you may transfer from one investment option to another in accordance with the rules of the plans.
- You may cash out of your investments (unless you are invested in the TIAA traditional annuity, which can only be cashed out over a 10-year period). Keep in mind, however, that income taxes will apply to the amounts you cash out. Also, if you cash out your investments before age 59 1/2, a 10% federal tax penalty may apply.
- You may rollover your account balances to a qualified retirement account (i.e., IRA). To avoid tax consequences, the rollovers should be made directly from the NYU plans to your personal account. Tax laws change frequently and you should obtain current information at the time of your termination of employment.
When your employment ends, you have several options for the 457(b) Plan:
- You will automatically receive your Plan benefits in a lump sum payment on or about the 90th day following the date of your termination of employment. If you do not want a lump sum payment, you may elect to receive your Plan benefits in a different form. Distribution election forms and information about the available forms of payment are available from TIAA. If you wish to elect a form of payment other than a lump sum, such as installments or an annuity, or transfer your account to your new nongovernmental employer’s 457(b) plan, you must elect your payment form any time prior to 60 days before your commencement date. You must receive (or begin to receive) payment of your Plan benefits no later than April 1 following the calendar year in which you turn age 72 or your employment terminates, whichever is later.
NYU Retirement Plan
Generally, withdrawals cannot be made while you are employed by NYU and its affiliates. However, you may make an in-service withdrawal of your own employee contributions and any rollover contributions upon attainment of age 59 1/2 or in the event that you become disabled. You are disabled for purposes of the Plan if the Social Security Administration has determined that you are entitled to a Social Security disability benefit. Further, if you are at least age 59 1/2 and you are no longer eligible for NYU matching and non-elective contributions, you may make an in-service withdrawal from your NYU matching and non-elective contributions as well. For information on withdrawals for a financial hardship, see page 13 of the Summary Plan Description (PDF).
Supplemental Tax Deferred Annuity (STDA) Plan
You may make an in-service withdrawal of your Plan balances upon attainment of age 59 1/2 or in the event that you become disabled. You are disabled for purposes of the Plan if the Social Security Administration has determined that you are entitled to a Social Security disability benefit. For information on withdrawals for a financial hardship, see page 8 of the Summary Plan Description (PDF).
Withdrawals are not permitted before retirement, except in the case of an unforeseeable emergency (see page 7 of the Summary Plan Description (PDF)).