Similarly, if you have a two-life annuity with a guaranteed period, and you and your annuity partner die before the period ends, your beneficiary will be entitled to a death benefit. But if either you or your annuity partner is still alive at the end of the period, your beneficiary will not receive any benefits. Many people who are entitled to death benefits have other sources of income or are also beneficiaries of life insurance policies. If a beneficiary has enough income from other sources, he or she can consider letting TIAA-CREF death benefits accumulate, rather than withdrawing them as income. However, federal tax laws set time limits for drawing survivor benefits.
Accumulations are subject to income tax in the year they are withdrawn.
Nonspouse as beneficiary. If your beneficiary is not your spouse and lifetime annuity income has already started, he or she has until December 31 of the year after the year of your death to select an income option. Spouse as beneficiary. In the first case, periodic income would have to start by December 31, 1999. In the second case, income could be deferred until December 31, 2001.