Benefits Plans - Retirement Savings Plans: Cash Withdrawals -
SRA Age 59½ Withdrawals (Current Employees)
What is an SRA age 59½ withdrawal?
If you have an SRA with TIAA-CREF and/or Fidelity, you may withdraw your accumulations while you are still working for the University at age 59½. There are no provisions for such a withdrawal for contributions made to the Basic Retirement Plan.
How much can I withdraw?
Your entire SRA accumulations (contributions and earnings) are available for withdrawal.
Is there an IRS penalty for doing so?
No, because the IRS early withdrawal penalty only applies if you are under age 59½.
Do I have to pay income tax on the withdrawal?
Yes, you will have to pay income tax on the amount you cash out. TIAA-CREF and Fidelity Investments are required by federal regulations to withhold 20% of the amount of the withdrawal for income tax purposes.
How do I arrange for a withdrawal?
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.