Three Year-End Tips to Help You Save More

Before November and December pass in a blur of spending, extra calories and year-end chores, take a minute to check on your financial well-being. Here are three simple ways to get your retirement savings in shape for 2020.

1. Give Yourself the Gift of an SRA

403(b) Supplemental Retirement Account lets you save more for retirement. The earlier you can put a few extra dollars away, the more time your money has to grow . . . and the earlier you may be able to retire.

Open a 403(b) SRA with as little as $1 per paycheck, which you can contribute either before or after taxes. Follow these step-by-step instructions to enroll through Wolverine Access. You do not have to contact the Shared Services Center, TIAA or Fidelity to open an account, unless you have questions.

2. Don't Miss the Deadlines to Change Your 2019 Payroll Deductions

If you want to change your payroll deductions to increase or max out your retirement contributions in 2019, pay attention to these deadlines. Just remember – if you only want to make a change for the end of this tax year, you’ll need to adjust your deductions again for the first paycheck of 2020! View Online Enrollment and Change Deadlines for complete information.

Retirement Savings Plan Change Deadlines for 2019 – Biweekly Paid
Account Type Last Day to Make 2019 Changes Paycheck Date
403(b) Supplemental Retirement Account Only

11/17/2019 - 11/30/2019

12/1/2019 - 12/14/2019

12/6/2019

12/20/2019

457(b) Deferred Compensation Plan Only

11/1/2019 - 11/30/2019

12/20/2019

Retirement Savings Plan Deadlines for 2019 – Monthly Paid
Account Type Last Day to Make 2019 Changes Paycheck Date
403(b) Supplemental Retirement Account Only

11/19/2019 - 12/8/2019

12/20/2019

457(b) Deferred Compensation Plan Only

11/1/2019 - 11/30/2019

12/20/2019

3. Increase Your Savings In 2020 Under New IRS Limits

You’ll be able to save more in 2020 thanks to new, higher IRS limits on retirement contributions.

  • $19,500 in 403(b) contributions for 2020 – plus $6,500 more if you are age 50 or older
  • $19,500 in 457(b) contributions for 2020 – plus $6,500 more if you are age 50 or older

Whether you max out your contributions in 2020 or increase the amount you save by one percent, you’ll need to take action to change your 403(b) SRA and 457(b) enrollments. The amount that you contribute to these retirement savings plans does not update automatically.

You can look up your individual contribution limits in Wolverine Access under Employee Self-Service > Benefits > Retirement Self-Service > Calculate Ret.Contribution. Wolverine Access shows a "per pay amount" that indicates how much you can save per paycheck for the rest of the year and for 2020.

You can read more about how to calculate and contribute the maximum under the U-M retirement savings plans, or visit Contribution Limits for complete information.

Note: The university does not provide tax or investment advice. This information is provided for educational purposes only. Please consult with a qualified tax advisor to ensure that you do not exceed IRS contribution limits.