I didn't think they could do the 6% rate for the RA since this puts the SRA/IRA rate at 5.25%. 

Only the 2000 vintage has a higher rate, 5.50%, and only the 2001 vintage matches the present  5.25%.  Unless I'm missing something, this means that almost all SRA/IRA participants should "flip" their SRA/IRA account into the present vintage.

I thought they would have to give prior vintages increases before they could increase the present rate.  

Perhaps a vast majority of participants are not aware of the ability to transfer their funds into the present vintage..... or T/C hopes this is the case.

Also, not sure what has changed in the investment environment that prompted this increase.  Has anyone come across any literature describing how they set these rates, and/or what committee does the analysis. 

Dick  

xdickben wrote:
"Perhaps a vast majority of participants are not aware of the ability to transfer their funds into the present vintage..... or T/C hopes this is the case."

I have Traditional in a GRA.  Is this saying I can move that money, from a vintage with a lower rate, to this new vintage with a higher rate? If so, how is it done?
ALSO:
If I transfer funds tomorrow fin my GSRA from TIAA REA to Traditional willI I recieve 5.25% on that money, and for how long?

Thank you,
Mike

Mike,

I don't think it can be done either in a RA or a GRA but I am not sure of the GRA as I never had one. To do it one has to move the Traditional funds out for one day and then move them back in. But you cannot move Traditional funds out of an RA except via a TPA. In the case of the GRA it can be done but there probably is a rule about when and even then as I remember, there is a 2% fee.

In the past it could be done in an IRA and I believe in a SRA and GSRA but rules have changed in recent years and I don't know if it still possible to do it; I suspect it is but am not sure. I will check on it tomorrow.

Ray

I forgot to mention a note about the effect on vintages if you roll Traditional funds out of an IRA or similar account and then back in. If you do this you lose all the vintages associated with the Traditional funds and all the funds rolled back in take on the current vintage. In effect you lose all your old vintages. I don't think this is as important a factor now as it was in earlier years as T-C has reduced the interest rate that accrues to "old" vintages but it is something to keep in mind and to check on if you are considering doing this - assuming it is still legal as I mention in my post above.

Ray

So... I moved money from TREA to Traditional last Friday (GSRA).  Am I now stuck at 5%?  If I contribute tomorrow, that amount gets 5.25%?

How can you tell what you are earning?

What about that 2% penalty?   What triggers that? 

Could you move it into money market and back?

Thanks for the insights!

As far as I know, a GSRA is a version of an SRA; the difference is that loans may be taken from a GSRA but not from the SRA which is why people use to create the GSRA. In my case this goes back nearly 20 years but things may be different in more recent years.

You need to phone into the counseling center and ask your questions there. However, I am quite sure the 2% penalty only applies to a GRA - not a GSRA! Phone T-C an inquire. When you speak with them, check and ask if you can now (July 1) move the Traditional funds out for the day and move them back in the next day. I think that is still possible but do ask. If it is you achieve your objective, obtaining the 5.25% rate. The place to move the funds for the day is the MM Account as there are no restrictions on moving money out of it.

In short, if I am right, you are not stuck!

Ray

jmat58:

So... I moved money from TREA to Traditional last Friday (GSRA).  Am I now stuck at 5%?  If I contribute tomorrow, that amount gets 5.25%?

What about that 2% penalty?   What triggers that? 

Could you move it into money market and back?

With a SRA/IRA you move the funds from the account to the money market and then can move it back into the SRA/IRA account the following day.  This "flipping" procedure is not valid with the RA accounts.

However, when you withdraw funds, you cannot select the vintage from which to extract the funds.  If you do not withdraw all the funds in your account, then funds are taken from all your vintages based upon the percentage you have in each vintage.

There is no 2% penalty for doing this.  Since the SRA/IRA receives 0.75% less interest than the RA, you already are penalized every year.  You can consider this maneuver as a small perk in exchange for this unreasonable large penalty.

(I suspect that T/C has rarely, if ever, had to sell a long term investment they wanted to keep, in order to satisfy a SRA/IRA withdrawal.  They have large inflows, plenty of cash and short term bonds, regular maturities of bonds, etc. ).

Dick 

Dick and I agree. The "flipping" of the Traditional Account funds apparently still works in the IRA and SRA but it never did and does not work in an IRA and GRA. GSRA's are NOT related to an SRA, they apparently are a offshoot of an RA Account, so the discussion on GSRA only adds needless complexity and confusion to the topic.

The 2% fee IN THIS DISCUSSION (there is a 2% fee for redeeming some mutual funds but we are not discussing this here) , if it is indeed 2% (I think it is) ONLY refers to moving Traditional Account funds out of a GRA.

Again, if you are still confused on this PLEASE PHONE THE COUNSELLING CENTER and get an official explanation!

Ray

In the above I said "The "flipping" of the Traditional Account funds apparently still works in the IRA and SRA but it never did and does not work in an IRA and GRA."

What I meant to say is that IT NEVER DID AND DOES NOT WORK IN AN RA and GRA.

Ray

Personally, I wouldn't complain about getting 5.25% risk-free, in this putrid market. In fact, I'm jumping at the chance and thank T-C for its generosity. I'll also have a slice of 6% in my self-remitter RA, s'il vous plait.

Sy

Just a bit less than a year ago, I posted the following at this site.

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click here

Note: this link is from July 5 before the clear collapse with KRAPPY KREDITS. And TIAA also sold out all its commercial-backed mortgage securities from TIAA RE several months ago.

Oh, happy day! Bob U.

Originally posted in thread: 1597

It is a rock-solid account, in a rock-solid company, and it did not get stuck holding what Bill Gross has called the "old maid"--the worst card of the house of cards created by investment bankers--young and old--whose last thought was and is the well-being of the customer.

I'll say it again: Be very glad you own TIAA.  This retiree sure is.  Bob U.