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Basic Retirement Plan
Supplemental Basic Plan TIAA-CREF
Supplemental Retirement Account (SRA)
Basic Retirement Plan
This is the plan in
which you contribute 5% of your salary on a tax-deferred basis and the University provides
a 10% matching contribution.
Cash withdrawals are not available from the Basic Retirement
Plan while you are employed with the University of Michigan. You must terminate employment
or officially retire from the University (see SPG 201.83) in order to take a cash withdrawal.
Termination of employment does not include being on a leave of absence, layoff ( RIF), phased retirement, retirement furlough, or being on long-term disability. If you are on one of these statuses, you
are still employed with the University because the employee-employer relationship is still
in effect. You are not eligible for Basic Plan withdrawals until your employment is
formally terminated.
- Leave of absence
- Layoff ( RIF)
- Phased retirement
- Retirement furlough
- Long-term disability
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Supplemental Basic Plan TIAA-CREF
This is the option that allows you to invest your supplemental contributions in the Basic Plan at TIAA-CREF, as opposed to investing in a separate SRA account. If you have made supplemental contributions to TIAA-CREF under the Basic Plan, you can transfer those amounts to an SRA in order to have access to the SRA in-service cash withdrawal and loan options. Your 5% Basic Plan contributions and the 10% University match are not eligible to be transferred to an SRA. Contact TIAA-CREF for information on how to transfer your supplemental contributions from the Basic Plan to an SRA.
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Supplemental Retirement Account (SRA)
SRA contributions are those you make to a separate account in addition to the 5% under the Basic Plan, or as the primary type of contribution if you are not eligible for the Basic Plan. You have greater flexibility to access your accumulations under the SRA (Supplemental Retirement Account) since they are not matched by the University and are not part of the Basic Retirement Plan.
There are three Internal Revenue Code (IRC) triggering events that allow you to access your accumulations; you also have the option of taking a loan from your SRA. For more details on these options, click on them below:
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Comparison of SRA Options
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SRA in-service Withdrawal Options |
SRA Loan |
|
Disability |
Hardship |
Age 59½ |
Generally subject to IRS 10% early withdrawal penalty2 |
No |
Yes |
No |
No1 |
Income tax due2 |
Yes |
Yes |
Yes |
No1 |
Can you still contribute to the Basic Plan? |
Yes |
No, participation suspended for six months |
Yes |
Yes |
Can you still contribute to the SRA? |
Yes |
No, participation suspended for six months |
Yes |
Yes |
Requires Benefits Office approval? |
Yes |
Yes |
No |
No |
Do you have to repay it? |
No |
No |
No |
Yes |
How much can you access? |
Entire SRA accumulation |
Contributions only; earnings are not available |
Entire SRA accumulation |
45% of TIAA-CREF SRA
50% of Fidelity SRA |
1 If you default on the loan, income taxes are due, and an IRS early withdrawal penalty may apply if you are under age 59½.
2 Consult with a qualified tax advisor for information on taxation of retirement plan distributions and the IRS early withdrawal penalty.
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