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