Retirees who take TDA loans have a choice of how they want to repay the loans: automatic deductions from their monthly retirement allowance, online payments in the secure section of our website, or monthly direct payments to TRS. To change your repayment method for any outstanding TDA loan, you may file a Request to Change TDA Loan Repayment Method (code LO105). You may also request to repay your outstanding loan in a lump sum by filing a TDA Loan Repayment Request Form (code LO11t) with TRS.

R-M-D stands for a Required Minimum Distribution.

The Internal Revenue Service (IRS) determines how long participants in Section 403(b) plans such as TRS’ Tax-Deferred Annuity (TDA) Program may defer payment from their TDA accounts. In general, you must begin receiving a distribution from your account if you are retired and are maintaining a TDA account and are turning 73 or older during the year.

The amount you must receive each year is known as an RMD.

TRS offers affected members the chance to receive a payment in the full amount of their RMD. However, TDA withdrawals that are received (and not rolled over) also count toward the distribution requirement for the year.

R-M-D stands for a Required Minimum Distribution.

The Internal Revenue Service (IRS) determines how long participants in Section 403(b) plans such as TRS’ Tax-Deferred Annuity (TDA) Program may defer payment from their TDA accounts. In general, you must begin receiving a distribution from your account if you are retired and are maintaining a TDA account and are turning 73 or older during the year.

The amount you must receive each year is known as an RMD.

TRS offers affected members the chance to receive a payment in the full amount of their RMD. However, TDA withdrawals that are received (and not rolled over) also count toward the distribution requirement for the year .

You must begin receiving an RMD if you have retired and are maintaining a TDA account and have reached a certain “beginning age” defined by the IRS (currently 73).

Your annual RMD amount varies from year to year. It is based on your TDA balance at the end of the previous year (including any outstanding TDA loan balances) and a life expectancy factor. If you are under 75, any Pre-1987 funds (all TDA contributions and earnings as of December 31, 1986) are excluded from the RMD.

If you have only one primary beneficiary for your TDA account, the beneficiary's age may also be a factor.

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.

EFT is available for other payments, as noted below.

If you are an in-service member paid on the City of New York payroll through direct deposit, you may elect to receive QPP loans or QPP direct withdrawals via EFT in the same account where you receive your pay. You would automatically receive a TDA loan or TDA direct withdrawal via EFT, unless you elect to receive these distributions by check.

If you are a retiree with TDA Deferral status and you are receiving your retirement allowance via EFT, you would automatically receive a TDA loan and TDA direct withdrawal via EFT in the same account where you receive your benefit payments, unless you elect to receive these distributions by check. You would automatically receive a Required Minimum Distribution (RMD) via EFT.

There are several key differences.

• While IRAs are generally available to all investors, Section 403(b) Programs are only available to employees of educational institutions, hospitals, and certain other tax-exempt organizations.
• Another key difference is the maximum amount that you can contribute to each plan: The maximum annual TDA contribution limit is generally higher than the maximum annual IRA contribution amount.
• A third difference involves tax benefits: The tax benefits of IRA contributions vary based on the type of IRA plan you choose and the amount of your income. Similarly, the tax benefits for TDA participation depend on whether you participate in the traditional option or the Roth option or both. Please consult a trusted tax advisor for details.
• A fourth difference is the withdrawal restrictions for these plans. Please consult your tax advisor for more information.

QPP beneficiaries may annuitize a QPP benefit only if the deceased was a Tier I or Tier II member and the QPP benefit is at least $10,000. If the deceased was a Tier II member, the member must have died while still in service. Eligible beneficiaries of Tier I members must file to annuitize their death benefit by October 31 of the year following the year of the member’s death; beneficiaries of Tier II members must file to annuitize their death benefit within 90 days of the date of the member’s death.

TDA beneficiaries of members of any tier may annuitize a TDA benefit of $10,000 or more. Eligible beneficiaries must file to annuitize their TDA death benefit by October 31 of the year following the year of the member’s death.

For TDA beneficiaries of TRS members who died on or after January 1, 2022, there are additional eligibility requirements under the SECURE Act. At least one of the following must apply to beneficiaries who want to annuitize their TDA benefit:

1. They are the surviving spouse of the deceased member;
2. They are not more than 10 years younger than the deceased member;
3. They are chronically ill; or
4. They are disabled.

No. Payments from an IRA do not meet distribution requirements for a Section 403(b) plan like TRS’ TDA Program. Only a payment from your TDA Program account or another Section 403(b) plan can meet these distribution requirements.