Goldstein Scorecard: B+ (dated October 4, 2026). See how it is graded.
TIAA Traditional Annuity Review (October 2026): Current Rates by Contract, the 3% RA Floor and the Liquidity Rules
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Facts verified against TIAA's rate sheet, contract-rules page and RA fact sheet on October 4, 2026 · Updated
TIAA Traditional is the fixed annuity Teachers Insurance and Annuity Association of America (TIAA) offers inside employer retirement plans and IRAs. Per TIAA's rate sheet, contributions applied in October 2026 earn 5.50% in RA and GRA contracts, 5.75% in RC, 4.75% in SRA and GSRA and 5.00% in RCP, held through February 28, 2027. RA contracts carry a 3% contractual minimum but pay transfers and withdrawals in 10 annual installments.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Current TIAA Traditional rates by contract (October 2026)
TIAA credits each dollar at the rate for its vintage, the month or period the contribution or transfer arrived. New money gets the rate for its month, and every vintage rate then holds through February 28, 2027. Rates also differ by contract type, which your employer chose.
| Contribution date | RA / GRA | RC | SRA / GSRA | RCP |
|---|---|---|---|---|
| October 2026 (new money) | 5.50% | 5.75% | 4.75% | 5.00% |
| September 2026 | 5.25% | 5.50% | 4.50% | 4.75% |
| May to August 2026 | 5.00% | 5.25% | 4.25% | 4.50% |
| September 2025 to April 2026 | 4.75% | 5.00% | 4.00% | 4.25% |
| July to December 2023 | 6.50% | 6.75% | 5.75% | 6.00% |
| 2012 to 2019 | 4.00% | 4.25% | 3.25% | 3.50% |
| 2020 to 2021 | 3.55% | 3.80% | 3.00% | 3.05% |
| Pre-2006 | 4.50% | 4.75% | 3.75% | 4.00% |
TIAA's IRA versions are lower: TIAA Traditional in the TIAA IRA credits 4.65% on October 2026 money, and IRAs issued before October 11, 2010 credit 4.25% (same rate sheet).
Correction: an earlier version of this page said TIAA Traditional rates are "declared each March 1 by vintage." That describes the declaration year, not how new money is priced. TIAA's rate sheet shows a new rate for each month's contributions (5.25% for September 2026 and 5.50% for October 2026 on RA and GRA), each then held through February 28, 2027.
Liquidity by contract type
| Contract | Liquidity type | Lump sum | Otherwise paid out |
|---|---|---|---|
| Retirement Annuity (RA) | Delayed | Not available | 10 annual installments (10 payments over 9 years), no surrender charge |
| Group Retirement Annuity (GRA) | Delayed | Only within 120 days after termination of employment, 2.5% surrender charge | 10 annual installments, no surrender charge |
| Retirement Choice (RC) | Delayed | Only within 120 days after termination of employment, 2.5% surrender charge | 84 monthly installments, no surrender charge |
| Supplemental Retirement Annuity (SRA) | Full | Any time, no surrender charge | Not applicable |
| Group Supplemental Retirement Annuity (GSRA) | Full | Any time, no surrender charge | Not applicable |
| Retirement Choice Plus (RCP) | Full | Any time, no surrender charge; some contracts apply a 90-day equity wash before moving to competing funds | Not applicable |
The trade is plain in the rate table: the delayed-liquidity contracts (RA, GRA, RC) are credited more than the fully liquid ones (SRA, GSRA, RCP) for the same vintage.
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Lifetime income payout rates
| Contribution dates | Single life, 10-year guarantee period | Joint life, 20-year guarantee period |
|---|---|---|
| 2026 | 8.2% | 7.2% |
| 2024 | 8.4% | 7.5% |
| 2012 to 2019 | 8.7% | 7.8% |
| Pre-2006 | 10.9% | 10.0% |
Per the same sheet, TIAA has credited more than the guaranteed rate on one or more contracts every year since 1948 and has given 18 income increases to existing annuitants from 1996 to 2026. Those additional amounts are not guaranteed beyond the period they are declared for. Annuitizing is permanent: once income starts you cannot switch options.
Historical RA returns (TIAA fact sheet as of June 30, 2026)
| Retirement Annuity (RA) | Return |
|---|---|
| 1 year | 4.36% |
| 3 years (annualized) | 4.43% |
| 5 years (annualized) | 4.21% |
| 10 years (annualized) | 4.00% |
Financial strength ratings
| Agency | Rating | Affirmed |
|---|---|---|
| AM Best | A++ | July 23, 2025 |
| Fitch | AAA | February 13, 2026 |
| S&P | AA+ | August 27, 2025 |
| Moody's | Aa1 | February 12, 2026 |
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A | AM Best A++ (affirmed July 23, 2025), Fitch AAA, S&P AA+, Moody's Aa1, per TIAA. |
| Rate competitiveness | B | October 2026 new money: 5.50% RA/GRA and 5.75% RC, close to the 5.50% to 6.05% A-rated 5-year MYGA range of October 14, 2026; 4.75% SRA/GSRA and 5.00% RCP sit lower. TIAA's rate is declared only through February 28, 2027, a MYGA's for its whole term. |
| Contractual minimum | B | RA: 3% minimum on premiums remitted since 1979 (fact sheet). Other contracts' minimums are in the contract and shown only after login, not published. |
| Liquidity | C (RA, GRA, RC) / A (SRA, GSRA, RCP) | RA: 10 annual installments only. GRA and RC: lump sum only within 120 days of leaving work, 2.5% charge. SRA, GSRA, RCP: lump sum any time, no surrender charge. |
| Costs | A | TIAA states there is no fee or expense ratio; no rider charges apply to the accumulation contract. |
| Transparency | A | TIAA publishes rates for every vintage and contract type, payout rates and the contract rules publicly. |
| Overall | B+ | Top ratings, no fee and published rates; held back by delayed liquidity on the higher-rate contracts and one-year rate declarations. |
Pros and cons
Pros
- Highest ratings TIAA reports from all four agencies (AM Best A++, Fitch AAA, S&P AA+, Moody's Aa1).
- No fee or expense ratio, per TIAA.
- RA money carries a 3% contractual minimum on premiums since 1979.
- Rates are published by vintage and contract type, so you can check what your money earns.
- Lifetime income option with published payout rates (8.2% single life, 10-year guarantee period, at 67 on 2026 money).
Cons
- The higher-rate contracts (RA, GRA, RC) restrict access: installments over 7 to 9 years, or a 2.5% charge inside a 120-day window.
- Rates are declared one year at a time (through February 28, 2027), not locked for a multi-year term.
- Access is mostly through an employer plan; your employer picks the contract type.
- Each vintage earns its own rate, so your blended rate is harder to read than a single MYGA rate.
Who it's for, and when to look elsewhere
Fits: employees of universities, hospitals and nonprofits whose plan offers TIAA Traditional and who want a fixed, no-fee slice of the plan with a path to lifetime income; long-term savers in RA, GRA or RC contracts who will not need a lump sum.
Look elsewhere if: you want one rate locked for a set number of years, or you hold a fully liquid SRA, GSRA or RCP balance and are comparing it with other fixed options. A MYGA locks a declared rate for its whole term. For comparison, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs and the best nationally available 5-year CDs about 4.70% to 5.00% APY (MYGAs: public carrier rate sheets, October 14, 2026; CDs: Bankrate and Popular Direct, October 18, 2026). Current rates: MYGA rates.
Tools: MYGA growth calculator · immediate annuity calculator · annuity payout calculator. Related: 403(b) annuity options for teachers · rolling a plan into an annuity · Annuity vs CD · are annuities FDIC insured?
Questions to ask your agent
- Which TIAA Traditional contract types do I hold (RA, GRA, SRA, GSRA, RC, RCP), and what is the contractual minimum interest rate on each, in writing?
- What is my dollar-weighted current rate across my vintages, and how does it compare with the October 2026 new-money rate for my contract?
- If I move money out, what is the full payout schedule: 10 annual installments, 84 months, or a lump sum with a 2.5% surrender charge inside the 120-day window?
- If you recommend moving this money into another annuity, what is that product's contractual minimum rate and its surrender schedule by year, with any MVA and free withdrawal amount?
- How are you paid on what you recommend? Annuity commissions come from the insurer, are built into pricing and are not deducted from premium. Ask the percentage and whether a longer surrender term pays more. See how annuity commissions work.
From my desk
When someone shows me a TIAA statement, the first thing I check is the contract type next to TIAA Traditional, because it decides everything else: an RA balance cannot come out in one piece, while an SRA balance can leave any time without a charge. The second is the vintage breakdown. The number people misread most is the rate: they see a headline new-money rate, or the fact sheet's 4.36% one-year return, and assume it is what their whole balance earns. Their money actually earns a mix, from 3.55% on 2020 to 2021 RA money to 6.50% on late-2023 money, per TIAA's current sheet.
Against a MYGA, I compare like with like: the rate on the specific dollars that could move, the term the rate is locked for (TIAA declares through February 2027; a MYGA declares for its full term), and the cost of getting out. Hypothetical: a GRA holder who leaves a job and takes the lump sum inside 120 days pays the 2.5% charge, so the new contract has to make that back before it is ahead. If the contract is an RA, any move happens in 10 payments over 9 years, and I would plan around that rather than against it.
Frequently asked questions
What is TIAA Traditional paying in October 2026?
Per TIAA's rate sheet, contributions applied in October 2026 are credited 5.50% in Retirement Annuity (RA) and Group Retirement Annuity (GRA) contracts, 5.75% in Retirement Choice (RC), 4.75% in Supplemental Retirement Annuity (SRA) and Group Supplemental Retirement Annuity (GSRA), and 5.00% in Retirement Choice Plus (RCP). Those rates hold through February 28, 2027. Older money earns the rate for its vintage, for example 4.00% on RA money contributed 2012 to 2019.
Is TIAA Traditional guaranteed?
Its guarantees are backed by the claims-paying ability of Teachers Insurance and Annuity Association of America (TIAA). For RA contracts, TIAA's fact sheet states a guarantee of principal and a 3% minimum annual interest rate on premiums remitted since 1979. Other contract types have their own minimum rate in the contract; TIAA shows it when you log in.
Can I take a lump sum from TIAA Traditional?
It depends on the contract type. Per TIAA's contract-rules page, SRA, GSRA and RCP allow lump-sum transfers and withdrawals at any time with no surrender charge. RA pays transfers and withdrawals in 10 annual installments. GRA and RC allow a lump sum only within 120 days after you leave your employer, with a 2.5% surrender charge; otherwise GRA pays over 10 annual installments and RC over 84 months. Your employer plan's terms also apply.
Does TIAA Traditional have a fee?
TIAA says there is no fee or expense ratio on TIAA Traditional because it is an insurance contract, not an investment product. As with any fixed annuity, the insurer's margin sits inside the rate it declares.
How is TIAA rated?
TIAA's own product page lists A++ from AM Best (affirmed July 23, 2025), AAA from Fitch (affirmed February 13, 2026), AA+ from S&P (affirmed August 27, 2025) and Aa1 from Moody's (affirmed February 12, 2026). Ratings can change.
Should I move TIAA Traditional to a MYGA?
Check your contract type first. RA money leaves in 10 payments over 9 years, and GRA or RC lump sums cost 2.5% and are open only for 120 days after you leave your job. A MYGA locks a declared rate for its whole term; TIAA's current rates are declared through February 28, 2027. Compare your vintage rates with current MYGA rates before moving anything.
Sources (checked October 4, 2026)
- TIAA, TIAA Traditional Annuity interest crediting and income payout rates (tiaa.org/public/pdf/t/tiaa-traditional-rates-advisor.pdf) (PDF dated September 30, 2026; crediting rates 10/01/2026 to 2/28/2027; November 2026 payout rates).
- TIAA, TIAA Traditional contract types and withdrawal options (tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-traditional-annuity/contract-rules) (web page, checked October 4, 2026).
- TIAA, TIAA Traditional product page (tiaa.org/public/retire/financial-products/annuities/retirement-plan-annuities/tiaa-traditional-annuity) (ratings footnote and fee FAQ, checked October 4, 2026).
- TIAA, TIAA Traditional Retirement Annuity (RA) fact sheet (as of June 30, 2026).
- MYGA and CD benchmark: public carrier rate sheets (MYGAs, October 14, 2026) and DepositAccounts (CDs, September 24, 2026) (see MYGA rates).
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). Not affiliated with TIAA. Rates are copied from the TIAA documents named, with their dates; they change monthly and differ by contract and vintage. Confirm current rates and read the contract before acting. Examples labelled hypothetical are illustrations, not quotes.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.