Benefits Plans - Retirement Savings Plans: Important Reminders for New Faculty and Staff

U-M Basic Retirement Savings Plan, 403(b) Supplemental Restirement Account (SRA), and 457(b) Plans

Enrollment is Not Automatic

You enroll in the Basic Retirement Savings Plan using Wolverine Access at the same time you make elections for your other benefits, such as medical and dental as a newly hired or newly eligible faculty or staff member.  You may enroll in the Basic Retirement Savings Plan at any time if you choose not to enroll upon hire. 

U-M Retirement Savings Plan Overview (PDF)

Questions? Call the HR/Payroll Service Center at (734) 615-2000     

or visit online at:

benefits.umich.edu/plans/retire/index.html

Did You Contribute to Another Plan?

Elective deferrals you make to another retirement plan in the same calendar year will reduce how much you may contribute to the U-M Retirement Savings Plan and SRA.  These plan types include:

  • Federal Thrift Savings Plan (ex. VA Rotators)
  • 403(b)
  • 401(k)
  • 408(k)(6) Salary Reduction Simplified Employee Pension Plans (SARSEPs)
  • SEP-IRAs
  • SIMPLE (Savings Incentive Match Plans for Employees)

If you have already made significant contributions to any of these plan types through another employer during the calendar year, the 457(b) is an option to make additional tax-deferred contributions to save for retirement. 

In addition, contributions made to certain other plans also reduce the amount you may contribute to the U-M 403(b) plans.  These include contributions to certain types of plans with respect to self-employment income, another 403(b) plan outside of the U-M plans, or certain types of plans sponsored by a corporation, partnership, or sole proprietorship in which you have more than a 50% ownership interest.  For more information view: Retirement Savings Plans: IRC 415(c) Limit

Save More with the 403(b) SRA and 457(b)

Contribute a fixed dollar amount to the 403(b) Supplemental Retirement Account (SRA) and/or the 457(b) Deferred Compensation Plan to save more for retirement at any time.  These amounts are separate from the 5% you contribute to the Basic Retirement Plan and are not matched by U-M.

403(b) SRA Web: benefits.umich.edu/plans/retire/sra.html

457(b) Web: benefits.umich.edu/plans/retire/457b

 

WHAT’S ON THE BENEFITS OFFICE WEBSITE

TOPIC

Description / URL

Divorce / QDRO
  1. Resources to call to establish one, legal requirements, forms, etc.
  2. benefits.umich.edu/plans/retire/qdro.html  

Quarterly Statements
  1. How to read quarterly statements, when deductions are sent, how to reconcile pay stub to statements.
  2. benefits.umich.edu/plans/retire/qstatement.html

Re-Enrollment
  1. Process to re-enroll if new hire, newly eligible, or just canceled participation.
  2. benefits.umich.edu/plans/retire/reenroll.html 

Eligible Compensation
  1. List of pay and comp that is eligible for retirement contribution and those that cannot have a deduction.
  2. benefits.umich.edu/plans/retire/eligcomp.html

MAX Handbooks
  1. Highly detailed and technical information on how calculate IRS limits, your limit when you leave or retire, how other retirement plan contributions can reduce your U-M max limit.
  2. benefits.umich.edu/plans/retire/maxlimit.html

Your Tax-deferring Limit
  1. Brief overview of contribution limits.
  2. benefits.umich.edu/plans/retire/limits/index.html

Enroll or change
  1. Process to enroll, cancel or change participation.
  2. benefits.umich.edu/plans/retire/enroll.html  

Cash Withdrawals
  1. Eligibility for Basic and SRA cash outs for current and former employees, taxation, tax planning issues.
  2. benefits.umich.edu/plans/retire/cashwithdrawal.html  

Transfers & Rollover
  1. Rollovers to an IRA, rollovers from another plan, moving money between vendors, forms and procedures.
  2. benefits.umich.edu/plans/retire/transrollover.html

Federal Income Tax
  1. Brief overview of federal taxation and which types of distributions are subject to mandatory 20% withholding.
  2. benefits.umich.edu/plans/retire/fedtax.html  

Michigan Income Tax
  1. Explains when and how plan distributions are eligible as an deduction for Michigan taxes.
  2. benefits.umich.edu/plans/retire/mitax.html  

IRS 10% Penalty
  1. When the penalty applies, exemptions to the penalty and how to qualify for them.
  2. benefits.umich.edu/plans/retire/irspenalty.html 

Military Leave
  1. How to make up retirement contributions missed when you take a military leave of absence.
  2. benefits.umich.edu/plans/retire/military.html 

How to Choose a Financial Planner
  1. Tips on choosing a planner, how they are credentialed, web sites that can direct you to find one.
  2. benefits.umich.edu/plans/retire/finplan.html  

MPSERS
  1. How to get credit from working at U-M to retire from the State of Michigan.
  2. benefits.umich.edu/plans/retire/miretire.html  

Retirement Income Choices
  1. Overview of the various income plans at retirement: cash outs, lifetime annuity, minimum distribution
  2. benefits.umich.edu/plans/retire/choices.html 

Calculate Your SRA Contribution Limit:

benefits.umich.edu/plans/retire/limits/

View deadlines to target a specific paycheck:

benefits.umich.edu/plans/retire/onlinedeadlines.html

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.