How much can I borrow?
Generally, you may borrow up to 45% of your TIAA-CREF SRA and 50% of your Fidelity SRA accumulation.  The minimum loan amount is $1,000 and the maximum is $50,000.  This is a combined loan limit and applies to all of your U-M SRA and 457(b) accounts with both vendors.

Are there any charges or fees for taking an SRA loan?
No.

Do I pay income tax or an SRA penalty for taking an SRA loan?
No. The loan is not treated as a cash withdrawal, so there is no income tax due, nor is there an IRS early withdrawal penalty. However, if you default on the loan, it is then treated as a withdrawal, and taxes and penalties are due. Keep in mind, though, that you are using after-tax dollars to repay your SRA loan that was funded with tax-deferred contributions.

How long do I have to repay the SRA loan?
You may choose the length of repayment period, from one to five years. If the loan is used solely for the purchase of your principal residence, you may choose a repayment period up to 10 years.

How do I repay the SRA loan?
Monthly payments are made directly to TIAA-CREF and/or Fidelity Investments. Payroll deductions are not available through the University, however, you can arrange an automatic debit from your checking or savings account.

Will I be charged interest while I repay the loan?
Yes. The rate is variable; contact TIAA-CREF and/or Fidelity Investments for the current interest rates. Also, the interest you pay is not tax-deductible.

Can I prepay my loan?
Yes. You can pay off your loan early with no penalties at any time.

Does an SRA loan affect my participation in the UM Retirement Savings Plan?
No. You may continue to participate in the UM Retirement Savings Plan if you take an SRA loan.