403b direct rollover from TIAA

[Guest thomthom49]

I have an American client living in England that wants to do a direct rollover to a Traditional IRA from TIAA. She accumulated the funds while working as a teacher in the USA before she emigrated to the UK She is obviously no longer in service (since 1993) at that school. The funds are in the TIAA Traditional account. They have informed her that she CANNOT move her money to a new qualified account outside TIAA in one lump sum. They have told her that she can only move the money into one of their plans in 10 payments over 9 years (Transfer Payout Annuity). Anyone else have experience of this type of restriction? It seems counterintuitive to me. It is after all her money. Would appreciate any advice anyone can offer.

[mbozek]

I have an American client living in England that wants to do a direct rollover to a Traditional IRA from TIAA. She accumulated the funds while working as a teacher in the USA before she emigrated to the UK She is obviously no longer in service (since 1993) at that school. The funds are in the TIAA Traditional account. They have informed her that she CANNOT move her money to a new qualified account outside TIAA in one lump sum. They have told her that she can only move the money into one of their plans in 10 payments over 9 years (Transfer Payout Annuity). Anyone else have experience of this type of restriction? It seems counterintuitive to me. It is after all her money. Would appreciate any advice anyone can offer.

If you read the certificate of insurability you will discover that the benefeits are paid out in 10 installments.