How to Borrow Against TIAA-CREF Retirement Funds

Having retirement funds sitting in an account that you can't put to use can be frustrating. There are ways to tap into those resources without penalty and here we will go through the process of what it generally takes to unlock these otherwise forbidden funds.

Things You'll Need

• A TIAA-CREF Retirement Fund.

Instructions

Borrow From The Future

1. Check to see if you are eligible. You may borrow funds from your TIAA-CREF account if your employer-sponsored retirement plan offers loans. You can log in to your account or call the plan administrator at your work to see if you are eligible to borrow from that account.

2. Find out how much you can borrow. Exactly what amount is available for a loan? It will be based on a percentage of your total balance as well as other factors depending on the type of employer sponsored retirement plan you have. A loan can effect and/or reduce the availability of funds. Please note the total collateralized amount reduces the availability of funds.

3. Find out the exact guidelines. You don't want to be taxed on the loan, so be sure to contact your administrator to see what happens if you get behind on your payments. Part of the loan could be taxed if it is in default.

4. Make additional payments. If possible, make a few additional payments to reduce the risk of defaulting on the loan and find out if there are additional charges to do so. Most plans will not charge to make additional payments.

5. Make sure you really need the loan. Borrowing from your retirement should be a last resort since there are many restrictions. Now that you know what is involved, try to exhaust all other sources of funding first.

Tips & Warnings

• Access your exact monetary needs before borrowing. You don't want to borrow more than actually needed.