University Of Michigan Benefits Office

Direct Transfers

What is a direct transfer?
A direct transfer is a tax-free transfer made directly between investment carriers. You can move your accumulations between TIAA-CREF and Fidelity Investments, as long as they remain in a U-M 457(b) Plan account. This can be done at any time, regardless of whether you are a current, former, or retired faculty or staff member. However, you cannot transfer your 457(b) to the SRA in order to gain access to the SRA cash withdrawal options.

How does a transfer differ from a rollover?
A transfer is used to move accumulations between investment carriers within an employer’s 457(b) plan. A rollover is a distribution that moves the accumulations into another investment vehicle, such as another employer’s retirement plan or an IRA.

Are direct transfers allowed to companies other than TIAA-CREF and Fidelity?
No. TIAA-CREF and Fidelity Investments are the two companies for the University of Michigan 457(b) Plan.

How to Make a Direct Transfer
Contact TIAA-CREF or Fidelity and request a direct transfer application. Complete and return the form to the investment company. If you do not already have an account with the company that you would like to receive the transfer, you will need to complete an application to set up the account before the transfer can be processed.

Submitting the direct transfer and account applications only move accumulations already on deposit; it does not change where your current and future contributions are sent. To change your current and future contributions, you must also submit the Salary Deferral Agreement to the Benefits Office. This form and the account applications are available on the Benefits Office Web site.

Limitations
The University 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 spouses, partners, and 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.