Benefits Plans - Retirement Savings Plans: 2012 403(b) SRA and 457(b) Limits

IRS Announces Contribution Limits for 2012

The Internal Revenue Service (IRS) has announced the limits for contributing to 403(b) and 457(b) plans for 2012. The limit on 403(b) and 457(b) elective deferrals will increase to $17,000 for each plan, while the limit for individuals age 50 and older increases to $22,500 for each plan.

If you turn age 50 in 2012

If you turn age 50 in 2012, your contribution limit for 403(b) and 457(b) plans will increase.  The IRS limit increases by $5,500 per plan for individuals starting in the calendar year age 50 is reached.  If you turn age 50 in 2012 you may view your per pay period limit based on the Age 50 increase on the “Calculate Ret. Contribution” panel in Wolverine Access.

View Your IRS Limits Online Anytime

A panel on Self Service > Benefits on Wolverine Access called “Calculate Ret. Contribution” will calculate your SRA and 457(b) contribution limit for 2012. 

• The panel will automatically display your 2011 contribution limit since it is not yet 2012. 
• Click “Recalc for Next Year/Current Date” to view your 2012 contribution limit. 
• The panel will display “Projection Date For: 01/01/2012” to indicate it is calculating your 2012 limit.
• If it displays the current date under this field, you are viewing your limit for the remainder of the current calendar year. 
• You may view this panel at any time throughout the year. 

Use Self Service > Benefits to Make Changes Anytime

If you wish to make any changes to your 403(b) Supplemental Retirement Account (SRA) and/or 457(b) amount(s), you may do so by logging on to Wolverine Access and using Self Service > Benefits. See the hours of operation for Wolverine Access below. Once you submit any changes and successfully finalize your contribution amount(s), you will receive an immediate confirmation of your election.  You are encouraged to print this confirmation for your records.

Effective Date of Changes
You may change your contribution amount at any time throughout the year.  Subject to deadlines, elections you make for the SRA are generally effective with your next available paycheck, which may be within the same month you are initiating the election.  However, elections for the 457(b) are always effective the month following that in which you initiate an election. 

Example

If you are paid monthly and you use Self Service > Benefits to change your SRA contribution between December 15, 2011 and January 23, 2012 it will take effect in your January 31, 2012 paycheck.  If you use Self Service > Benefits on January 24, 2012 the change will take effect with your February 28, 2012 paycheck.  The deadlines and this example assume you complete the election processes, which involves finalizing and submitting the event. 

The effective date of the SRA and 457(b) elections will appear on the first screen in Wolverine Access after you have hit the Initiate SRA/457(b) Election button.  Please be sure to review the effective date of your elections before proceeding.  If you do not receive a confirmation number via email immediately after completing the election process, you have not properly submitted and finalized the election.

How to Use Self Service > Benefits

You may use Self Service > Benefits throughout the year to change your SRA and/or 457(b) contribution amounts, limited to one set of changes per payroll period.  Once you successfully finalize and submit any changes to your contribution amount(s), you will receive an immediate confirmation of your election.  You are encouraged to print this confirmation for your records.

Follow these steps to use Self Service > Benefits:

• Go to the Wolverine Access Gateway at http://wolverineaccess.umich.edu
• Select the Faculty and Staff tab
• Select Employee Self-Service
• Enter your uniqname and password
• Select Benefits
• Select Initiate SRA/457(b) Election
• Review the effective dates for the SRA and 457(b) plans and confirm you wish to proceed
• You must Submit and Finalize your elections in order to complete the enrollment process
• Follow the online instructions

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