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U-M Retirement Savings Plan

Did you increase your contribution?

  • If you increased your 403(b) SRA and/or 457(b) contribution recently you may want to lower it or the same amount will continue to be deducted in January 2014 and beyond.

  • No action is required of you.  However, this notice is being provided as a courtesy so that you are aware that the contribution will continue to be deducted. 

  • Click here to view the deadlines if you want to change the contribution for the January 2014 paycheck.

  • Click here to view the deadlines for all 2014 paychecks.

Limits did not increase for 2014

  • The 403(b) and 457(b) contribution limits did not increase for 2014.

  • Your current 403(b) SRA and/or 457(b) amount will continue into 2014 if you have a continuous appointment.

  • If you reach the annual limit before the end of the year, your contributions will be suspended for the remainder of 2014 and resume in January of 2015.

  • You do not need to make an election unless you want to change the amount of your contribution.

New after-tax Roth

You can now make after-tax Roth contributions to the 403(b) SRA and 457(b), with the incentive that qualified distributions are completely tax-free.  You may also postpone distributions from the Roth 403(b) SRA and Roth 457(b) indefinitely during your lifetime (requires rollover to a Roth IRA) and even pass assets tax-free to your heirs.

The Roth 403(b) SRA and Roth 457(b) are not new plans and they do not increase the contribution limits.  This is a new plan feature that simply allows you the choice to make your contributions as after-tax Roth, traditional pre-tax, or a combination of both.

Resources

For more information, visit Retirement Savings Plans on the Benefits Office website.

 

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