Benefits
Distribution of Retirement Savings
Enjoy The Rewards
You may take money out of your retirement savings when your employment at Stanford ends.
To defer taxes, you can request a direct rollover to a traditional Individual Retirement Account (IRA), a qualified retirement plan, another employer’s 403(b) plan, or an eligible governmental deferred compensation plan that will accept your rollover. When you roll over your account balance, you pay no taxes and tax deferral continues until you withdraw the money. You should consult a tax advisor before applying for benefit distribution.
Distributions While Still Employed
In some cases, you can request a distribution while you are still employed at Stanford.
If you are age 59-1/2 and still employed at Stanford, you can request an in-service distribution of your Tax-Deferred Account (TDA). If you are age 59-1/2 and working 50% or less in a non-tenured position, then you can also request an in-service distribution of your Contributory Retirement Account (CRA). All distributions are subject federal and state income taxes. Employees who are under age 59-1/2 and receive a distribution may also be subject to a penalty tax.
When Employment At Stanford Ends
All plan contributions stop at the time your employment with Stanford ends. You will, however, continue to receive quarterly statements and be able to direct your own investments. You remain subject to all plan rules.
Even though you are no longer employed at Stanford, it remains your responsibility to keep your mailing address up-to-date with the Stanford Retirement Manager. This is important so you can be notified of any future plan changes.
For more information, read .
Applying For a Distribution
Before any payments can begin from the Plan, you need to apply for benefits (also called a distribution) in advance and go through the application review and waiting period.
To begin the process, contact your investment provider(s) directly and specify if you want a lump sum payment, a retirement annuity or both. This process may take a minimum of 45 days. Be sure to file your application at least 30 days before the date you want your benefit payments to begin. All distributions are subject to a minimum 30-day waiting period after your termination date. In addition to the 30-day waiting period, allow at least 15 business days for the administrative review and approval process of your distribution request. Distributions may be subject to an administrative processing fee. No distributions will be reviewed, approved or processed during the last two weeks in December when the benefit offices are closed for winter break.
Note: Your account will be valued as of the date your distribution request has been fully reviewed, approved and processed. You bear the gain or loss in any market fluctuations that occur between the date you apply for a distribution and the date the distribution is made.
Stanford Contributory Retirement Plan - Required Minimum Distributions (RMD)
When you participate in the Stanford Contributory Retirement Plan (SCRP) and terminate employment, you must receive a minimum amount from your SCRP account each year after you reach age 70 ½, starting no later than April 1 of the year following the end of the year in which you reach age 70 ½. This minimum amount is also known as a Required Minimum Distribution (RMD). However, there is an exception to the RMD. If you become employed by Stanford Hospitals and Clinics, Lucile Packard Children’s Hospital, University Healthcare Alliance, Packard Children’s Health Alliance, SAA Sierra Programs LLC (Alpine Chalet) or another member of Stanford’s controlled group of employers, the IRS considers you to be employed by Stanford University for purposes of distributions from the SCRP. This means that you cannot take a distribution from SCRP while employed by any of these entities (except for certain permitted in-service distributions) and, therefore, you do not have to take a RMD from the SCRP. When you leave the Stanford controlled group of employers, you will again be required to take RMDs from the SCRP.
Taking Out A Loan
Loans are an important plan feature. They give you the opportunity to borrow from your account balance, and then repay yourself. You may take out a loan against your account balance in your Tax-Deferred Account and/or Contributory Retirement Account, as long as your funds are with Vanguard or Fidelity. TIAA-CREF does not permit loans. Learn more about .
Hardship Distributions
Hardship distributions are available under limited circumstances, for example, to purchase a primary home or pay for qualified medical expenses. For more information on hardship distributions, download or call Stanford Retirement Manager and speak with a Retirement Specialist.
Important: If you become employed by Stanford Hospitals and Clinics, Lucile Packard Children’s Hospital, University Healthcare Alliance, or SAA Sierra Programs LLC (Alpine Chalet), the IRS considers you to be employed by Stanford. For purposes of your retirement plans, this means you cannot take a distribution from SCRP while employed by any of these employees.
Note: Neither Stanford nor any Plan fiduciary or investment provider will be liable if an administrative plan process (i.e., enrollment, distribution) is materially delayed due to circumstances beyond their reasonable control. This includes, but is not limited to, war, earthquake, fire, flood, hurricane, tornado, pandemic, acts of terrorism and acts of God which could not be avoided by the exercise of due diligence.
Spousal Rights To Benefits
Federal and California laws guarantee certain rights to the spouse of a retirement plan participant.
Learn more about .
We also have model documents for Qualified Domestic Relations Orders for and .
The Retirement Savings section of the Stanford Benefits website provides a summary of eligibility, coverage, vesting, retirement options, payment options and other subjects related to retirement savings. However, the official Plan Documents, together with certain annuity contracts and custodial agreements with investment providers (all as amended from time-to-time) govern Plan operation, and the determination and payment of benefits. In the event of any conflict between the information in this section and the official Plan Documents or any of the annuity contracts or custodial agreements, the Plan Document, annuity contract, or custodial agreement will govern.
