Benefits Plans - Retirement Savings Plans: Cash Withdrawals -
403(b) SRA Disability Withdrawals (Current Employees)

What is a 403(b) SRA disability withdrawal?

If you have a 403(b) SRA with TIAA-CREF and/or Fidelity, you may withdraw your accumulations while you are still working for the University if you become disabled. There are no provisions for such a withdrawal for contributions made to the Basic Retirement Plan.

What is the definition of disability?

IRC Section 72(m) defines an individual to be disabled if they are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to be of long-continued and indefinite duration. Individuals applying for a disability withdrawal must provide verification of disability to the Benefits Office.

What if I don’t meet the criteria of being disabled?

Consider taking a 403(b) SRA loan or review the 403(b) SRA hardship withdrawal information to determine whether you qualify.

How much can I withdraw?

Your entire 403(b) SRA accumulations (contributions and earnings) are available for withdrawal.

Is there an IRS penalty for doing so?

No. The IRS 10% early withdrawal penalty for withdrawals made before age 59½ does not apply to disability withdrawals.

Do I have to pay income tax on the withdrawal?

Yes, you will have to pay income tax on the amount you cash out.

Does a disability withdrawal affect my participation in the U-M plan?

No. You may continue your participation in the U-M Retirement Plan if you take an SRA disability withdrawal.

How do I arrange for a 403(b) SRA disability withdrawal?

  1. Contact TIAA-CREF and/or Fidelity and request a SRA Disability Withdrawal application:
    • TIAA-CREF ............... 1-800-842-2776
    • Fidelity .................... 1-800-343-0860
  2. Complete your sections of the TIAA-CREF and/or Fidelity SRA Disability Withdrawal application.
  3. This form includes a section for the Benefits Office to certify that you are disabled. You will need to supply certification of your disability status to the Benefits Office, for example, proof of Social Security disability benefit entitlement.
  4. Mail, FAX, or drop off the TIAA-CREF and/or Fidelity SRA Disability Withdrawal application and documentation of disability status to the Benefits Office.

    University of Michigan Benefits Office
    3003 S. State Street
    Wolverine Tower G300
    Ann Arbor , MI 48109-1278
    734-615-2000 Phone
    734-615-4007 FAX
  5. The Benefits Office will complete the employer authorization section on the TIAA-CREF and/or Fidelity SRA Withdrawal application and forward the form to the investment carrier within three working days.
Limitations
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.