Benefits Plans - 457(b) Deferred Compensation Plan: The U-M 457(b) Plan at a Glance

457(b) governmental deferred compensation plan

TIAA-CREF and Fidelity Investments

Voluntary

Enrollment may occur at any time, effective the month following the date your applications are filed with the Benefits Office.

All contributions are immediately vested.

All faculty and staff members with an appointment effort of 1% or greater, and university funding for 4 continuous months or longer. Temporary staff are not eligible to participate.

Contributions and earnings are tax-deferred until distribution. Subject to FICA withholding, but not state or federal taxation at time of contribution. Taxed as ordinary income at distribution.

• You elect to contribute a fixed dollar amount per pay period.
• You elect pre-tax or Roth after-tax contributions
• There is no University contribution.

You may increase, decrease, or cancel your contribution at any time; all such changes are effective the month following the date your forms are filed with the Benefits Office.

You may change your investment funds at TIAA-CREF and Fidelity anytime.

You may transfer accumulations between TIAA-CREF and Fidelity at any time. Contact the company that will receive the transfer for assistance.

You may make contributions on earned compensation that is paid to you as a U-M faculty or staff member, subject to federal income tax withholding through the university, and reported on a W-2 issued by the university.

• $17,500 general limit.
• $23,000 if you are age 50 or older.

Contributions made to another plan, except another 457(b) plan, will not reduce your limit for making contributions to the U-M 457(b) plan. Consult with a qualified tax advisor to ensure your total contributions to all plan types do not exceed Internal Revenue Code limits.

• One-time withdrawal if your account balance is no more than $5,000 and you have made no contributions to the plan for two years prior to the date of distribution.
• At age 70 ½ or older.

At any age.

You may rollover your U-M 457(b) to another eligible retirement plan at any age once you have retired or terminated employment. See Rollovers Out of the U-M Plan for important tax implications.

No

Yes, once you have retired or terminated employment 1.

Yes

• Lifetime or fixed-period annuity
• Cash withdrawal (partial, total, systematic)
• Minimum distribution at 70 ½
• Rollover to another eligible retirement plan
• Leave the accumulations until a later date.

You may enroll online using Self Service > Benefits on Wolverine Access.