Avoid This TIAA RMD Mistake: MDO vs Systematic Withdrawals
Avoid This TIAA RMD Mistake: MDO vs Systematic Withdrawals #tiaaa #tiaatraditional #tiaaa Required Minimum Distributions (RMDs) from TIAA accounts can get complicated—especially when multiple contracts and plans are involved. In this video, Greg Shepard explains a real-world situation where a couple unintentionally set up withdrawals that could have caused confusion and extra income distributions. The issue started when they attempted to take their RMD and then transfer assets out of TIAA, but used a cash withdrawal form with systematic payments instead of the Minimum Distribution Option (MDO). Because TIAA calculates RMDs by contract, this created ongoing monthly withdrawals that were separate from the required distribution for the year. Greg breaks down: • Why each TIAA contract has its own RMD • How systematic withdrawals can unintentionally continue in perpetuity • When the Minimum Distribution Option (MDO) is the correct approach • Why submitting a transfer request first can often simplify the entire process • How TIAA automatically handles RMDs when assets are transferred to a rollover IRA If you have multiple TIAA contracts or plans, understanding how distributions work is critical to avoiding mistakes. If you’d like help navigating your TIAA accounts or planning distributions, feel free to reach out. =========================== Make sure to connect w/ us ➡ https://tiaasimplified.com 🔔 Make sure to subscribe to get notifications of future videos @TIAAsimplified 📆 Jump on my calendar to see how we can simplify your TIAA life.... https://calendly.com/greg-safinancial... 🎤 Explore the Podcast https://tiaasimplified.blubrry.net/ email: [email protected]

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