T-D-A stands for the Tax-Deferred Annuity Program, which includes a traditional TDA and a Roth account option. TRS’ TDA Program is a voluntary investment plan that allows you to save extra money for your retirement.

This defined-contribution program, established under Section 403(b) of the Internal Revenue Code, provides TRS members with the opportunity to save additional funds for retirement. Participants in the traditional TDA option make contributions on a pre-tax basis, while participants in the Roth option make after-tax contributions. Generally, earnings grow tax-free in the accounts. Traditional TDA funds are taxable when received as income, while Roth funds are tax-free when received as a qualified withdrawal.

R-M-D stands for a Required Minimum Distribution. This is the amount that certain participants in TRS' TDA Program must receive from their TDA funds in a given year to meet the distribution regulations of the Internal Revenue Service. RMDs apply only to TDA participants who have separated from service, reached age 73 in 2023 or later, and have TDA Deferral status. It is important to note that the IRS imposes an excise tax on any amounts that are required to be distributed for a given year, but are not.

Also, certain members who are vested and inactive may become subject to RMD requirements for their Qualified Pension Plan accounts.

If you are close to retirement age, your Annual Benefits Statement may include estimates and projections of your TDA annuity.

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.

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

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, 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.

In most cases, the unit values used would be the unit values in effect for the month after TRS' receipt of your TDA Total Withdrawal Application (and Request to Close TDA Account) (code TD32) or online equivalent.

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).