In general, TDA investment election changes made by in-service TDA participants and members with TDA Deferral status take effect on the next conversion date that occurs at least 30 days after TRS receives their form or online request. If your elections have not taken effect in that time frame, then TRS may not have received your TDA Investment Election Change Form (code TD45) or online request, at least 30 days before the next conversion date. In such a case, your elections would take effect on the following conversion date.

In general, TDA investment election changes made by TDA annuitants take effect on the next conversion date that occurs at least 60 days after TRS receives their form. If your elections have not taken effect in that time frame, then TRS may not have received your TDA Annuitant’s Investment Election Change Form (code RP9) at least 60 days before the next conversion date. In such a case, your elections would take effect on the following conversion date.

In general, yes. Any TDA withdrawals you receive (and do not roll over to a successor plan) count toward your required distribution for the year. But it also depends on your RMD election.

If you file an RMD election and elect to receive payment of your RMD, you will receive the full amount of your RMD even if you have received separate TDA withdrawals during the year.

If you do not file an RMD election, you will receive a payment (generally in October) to meet the IRS requirements. That payment amount would be offset by the amount of any withdrawals you received.

Here’s an example:

Angela’s RMD for the year is $19,000. She makes a direct withdrawal of $10,000 in May. If she files an RMD election and requests to receive an RMD payment, she will receive the full RMD amount ($19,000) in whatever month she chooses.

If Angela does not file an RMD election, TRS will consider any withdrawals she received earlier in the year before paying the RMD balance. Angela will receive a payment of $9,000 at the end of October, fulfilling the IRS’ distribution requirement for the year.

Members can file for investment election changes at any time, and the changes will take effect on the next available quarterly start date: January 1, April 1, July 1, or October 1.

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QPP Investment Election Changes (except retirees)

TDA Investment Election Changes (except annuitants)

TRS must receive these requests at least 30 days in advance. You can log in and make TDA changes online, or you can file the paper TDA Investment Election Change Form (code TD45). For QPP changes, file the paper QPP Investment Election Change Form (code MA7).

Yes. You may do so by submitting a withdrawal request in the secure section of the TRS website.

TRS would issue your distribution of TDA Program funds as follows:

• For partial withdrawals of up to 95% of your TDA or Roth balance drawn only from your Fixed Return Fund: Generally within 15 days of TRS’ receipt of your withdrawal request.
• For all other withdrawals: Generally within 45 days of TRS’ receipt of your withdrawal request.

No. There is no Required Minimum Distribution from a Roth account in TRS’ TDA Program.

TRS membership provides a wide range of benefits, including the following:

• A guaranteed retirement allowance through our Qualified Pension Plan (QPP) upon meeting certain age and service requirements.
• The opportunity to set aside additional funds for retirement by participating in our Tax-Deferred Annuity (TDA) Program. The TDA Program offers a traditional (pre-tax) option and a Roth (after-tax) option.
• Loans from your QPP and traditional TDA accounts after your first year of credited service or TDA participation, respectively.
• Disability retirement benefits upon meeting certain requirements; and
• Death benefits for your surviving beneficiaries.

The current interest rate on a QPP loan is 6%.

For all tiers, the interest rate on a TDA loan is equal to the annual rate of return that you would receive on TDA investments in the Fixed Return Fund. Therefore, for members serving in (or retired/resigned from) a UFT-covered title, the interest rate on TDA loans would be 7%; for other members, the interest rate would be 8.25%.

A $30 service charge is added to all TDA loans, as well as to QPP loans issued to Tier III, IV, and VI members.

No, based on an Internal Revenue Service change effective after 2019. However, you would not be eligible for a hardship withdrawal unless you have maximized certain other available TRS resources. These include any pre-1989 funds and if you are a Tier I or Tier II member, any excess Annuity Savings Fund (ASF) accumulations. You should also ensure that you have maximized any reasonably available funds or distributions from other resources before you apply for a TDA hardship withdrawal.

The current interest rate on a QPP loan is 6%.

For all tiers, the interest rate on a TDA loan is equal to the annual rate of return that you would receive on TDA investments in the Fixed Return Fund. Therefore, for members serving in (or retired/resigned from) a UFT-covered title, the interest rate on TDA loans would be 7%; for other members, the interest rate would be 8.25%.

A $30 service charge is added to all TDA loans, as well as to QPP loans issued to Tier III, IV, and VI members.