Benefits Plans - Retirement Savings Plans: Cash Withdrawals -
403(b) SRA Loans (Current & Former Employees)

What is a 403(b) SRA loan?

If you have a 403(b) SRA with TIAA-CREF and/or Fidelity, you may borrow from it at any time, for any reason, regardless of whether your employment is active or terminated. There are no provisions for a loan from contributions made to the Basic Retirement Plan.

How much can I borrow?

Generally, you may borrow up to 45% of your TIAA-CREF 403(b) SRA and 50% of your Fidelity 403(b) SRA accumulation. The minimum loan amount is $1,000 and the maximum is $50,000. This is a combined loan limit and applies to all of your U-M 403(b) SRA and 457(b) accounts with both vendors.

Are there any charges or fees for taking an SRA loan?


Do I pay income tax or an SRA penalty for taking an SRA loan?

No. The loan is not treated as a cash withdrawal, so there is no income tax due, nor is there an IRS early withdrawal penalty. However, if you default on the loan, it is then treated as a withdrawal, and taxes and penalties are due. Keep in mind, though, that you are using after-tax dollars to repay your SRA loan that was funded with tax-deferred contributions.

How long do I have to repay the SRA loan?

You may choose the length of repayment period, from one to five years. If the loan is used solely for the purchase of your principal residence, you may choose a repayment period up to 10 years.

How do I repay the SRA loan?

Monthly payments are made directly to TIAA-CREF and/or Fidelity Investments. Payroll deductions are not available through the University, however, you can arrange an automatic debit from your checking or savings account.

Will I be charged interest while I repay the loan?

Yes. The rate is variable; contact TIAA-CREF and/or Fidelity Investments for the current interest rates. Also, the interest you pay is not tax-deductible.

Can I prepay my loan?

Yes. You can pay off your loan early with no penalties at any time.

Does an SRA loan affect my participation in the U-M Retirement Savings Plan?

No. You may continue to participate in the U-M Retirement Savings Plan if you take an SRA loan.

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

  1. Contact TIAA-CREF and/or Fidelity and request an SRA Loan application:
    • TIAA-CREF ............... 1-800-842-2776
    • Fidelity .................... 1-800-343-0860
  2. Employer authorization is not needed.
  3. Return your completed loan application to TIAA-CREF and/or Fidelity.
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.