There’s good news for those planning to beef up their retirement investments in 2023. Contribution limits have increased for two of U-M’s retirement savings plans.
Put Away More in 2023
Why revisit your contributions now? Financial experts agree that small increases can add up to big savings when given time to grow.
Faculty and staff invested in the 403(b) Supplemental Retirement Account (SRA) and 457(b) Deferred Compensation Plan can now save more for the future. The Internal Revenue Service recently announced increased annual contribution limits for 2023:
- For employees younger than age 50: increase from $20,500 to $22,500
- For employees ages 50 and older: $30,000 for each plan
The limit includes your 5 percent 403(b) Basic Retirement Plan contribution.
Consult Updated Calculators
U-M’s 403(b) and 457(b) calculators in Wolverine Access have been updated with contribution limits for the rest of 2022 and for 2023. To view them:
- Select Faculty & Staff > Employee Self-Service > Benefits > Calculate Ret. Contribution.
- The View tabs for the 403(b) and 457(b) plans are at the top, left side of the page.
- The "As of Date" in the upper right margin should read the current date and limit for 2022.
- Click "Recalc for Next Year" to calculate the limit for the following calendar year.
Contributions and Your Paycheck
If you choose to increase your retirement contributions, your investment deductions will appear in future paychecks. View these monthly tables that list deadlines for making these changes with future paychecks in mind. And note that whether you’re paid monthly or bi-weekly makes a difference. The deadlines for the first available January 2023 paycheck for each plan are listed below.
457(b) Deferred Compensation Plan – Monthly Paid
| Paycheck Date | First Date to Change Elections | Last Date to Change Elections | |||
|---|---|---|---|---|---|
| 1/31/2023 | 12/1/2022 | 12/31/2022 |
457(b) Deferred Compensation Plan – Biweekly Paid
| Paycheck Date | First Date to Change Elections | Last Date to Change Elections | |||
|---|---|---|---|---|---|
| 1/13/2023 | 12/1/2022 | 12/31/2022 |
403(b) Supplemental Retirement Account (SRA) – Monthly Paid
| Paycheck Date | First Date to Change Elections | Last Date to Change Elections | |||
|---|---|---|---|---|---|
| 1/31/2023 | 12/19/2022 | 1/23/2023 |
403(b) Supplemental Retirement Account (SRA) – Biweekly Paid
| Paycheck Date | First Date to Change Elections | Last Date to Change Elections | |||
|---|---|---|---|---|---|
| 1/13/2023 | 12/25/2022 | 1/7/2023 |
Save Now for Future-You
These changes are just a few you can make to fund the retirement you create. To become more informed about additional strategies to strengthen your investments, contact Fidelity Investments and TIAA, U-M’s longtime partners in administering its retirement plans.
Schedule an appointment virtually or by phone at no charge. Technology allows you to see what the Fidelity and TIAA reps see on their screens, so you can get specific about your savings for a better 2023 – and beyond.
