Skip to main content
No. of Recommendations: 0
Here's my dilemma. My employer offers a retirement annuity through TIAA-CREF, and that's it. No other option for 401(k) or 403(b). They will put in 8% of annual income if the employee invests 5%. So that first 5% is a no-brainer. However, is it worthwhile for me to contribute beyond that 5%, or is my money better off in a (taxable) index fund?

One option you may not be aware of is that if you open an SRA account with TIAA-CREF (which is where you would put additional funds that aren't matched by your employer), as you accumulate funds in your SRA you may transfer them out to a 403b(7) account that you open as an individual with another mutual fund company, i.e. Vanguard.

However, as was mentioned the TIAA-CREF annuities compare well with other mutual fund families and unless you have some special interest that isn't covered by the CREF options, I don't think it's worth the trouble of opening the outside 403b(7).

It may also be possible to transfer your "regular" (employer-matched) funds to a 403b(7), but not likely. Accounts which contain employer-contributed funds are subject to clauses in the agreement between the employer and the provider (TIAA-CREF in this case) which prohibit those accounts from being moved to a 403b(7) while the employee is still active with the employer. This feature seems to be built into most plans, as it guarantees the provider will manage the bulk of plan monies.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.