Save more for your retirement with a 403(b) Supplemental Retirement Account (SRA) and meet your savings goals faster. You contribute a fixed dollar amount each pay period, up to the IRS limit. Since the university does not match these contributions, you have more options for accessing the funds while you are still employed. You may enroll, increase, decrease, or cancel your contribution throughout the year.
Type of Plan
The SRA is a 403(b) plan. You have two options for the type of contributions you make to the plan, which determine whether you pay income tax on contributions to the plan or on distributions from the plan at a later date:
- Tax-deferred contributions with income tax due upon distribution
- After-tax Roth contributions with tax-free qualified distributions
No Income Limits on Roth 403(b) SRA
You may only contribute to a Roth IRA if you make less than a certain amount of money: $153,000 for single filers and $218,000 for married couples filing jointly for 2023. Unlike a Roth IRA offered through a bank or other financial institution, these income restrictions do not apply to the Roth 403(b) SRA. Faculty and staff may contribute to the Roth 403(b) SRA without regard to the IRS income limit that applies to a Roth IRA. In addition, your entire 403(b) SRA contribution can be made as after-tax Roth, allowing you to contribute much more than the 2023 Roth IRA limit of only $6,500 ($7,500 if you are 50 or older). The Roth 403(b) SRA may be of particular interest to individuals whose income is above the limit to qualify for a Roth IRA and to those who want to save more after-tax than the Roth IRA permits. Learn more about Roth options.
The following groups are eligible to enroll in a 403(b) SRA:
- All regular, active faculty or staff members (including Supplemental Instructional staff), House Officers, Research Fellows, Professional Specialists, GSIs, GSSAs, and GSRAs with a 1% or greater appointment of at least four months duration paid by the university
- Rehired retirees with funding and effort (including emeritus titles)
- Temporary staff
You must receive earned compensation reportable on a W-2 and subject to federal, state, and FICA tax to be eligible to contribute to the 403(b) SRA.
Examples of compensation that may be contributed:
- Base salary and wages
- Incentive payments (Risk Pay) under the University of Michigan Medical Group (UMMG)
- Summer salary for university-year appointees
- Shift and administrative differentials
- Temporary hourly earnings
Examples of ineligible compensation:
- Fellowship, scholarship, and stipends
- After-tax payments
- Long-term disability plan benefit payments
- Worker’s Compensation
Your Contribution Limit
The Internal Revenue Code limits the total amount of contributions that may be made to all retirement plans you have across all employers. The 403(b) SRA contribution limit applies to both tax-deferred and after-tax Roth amounts you make (i.e., there isn’t a separate limit for each type of contribution) and does not apply to Roth IRA contributions.
View how much you may contribute to the 403(b) SRA by logging into Wolverine Access. Select Employee Self Service, click the Benefits tile, and then click the Calculate Ret. Contribution tile to view your 403(b) contribution limit for the current year and the following year. The panel also has a tab you may select to view your contribution limit for the 457(b) Deferred Compensation Plan.
Visit Contribution Limits to learn more about how much you may contribute.
If You Have Another Retirement Plan
Elective deferrals you make to another retirement plan will reduce how much you may contribute to the U-M Basic Retirement Plan and 403(b) SRA. For example, contributions you make to the Federal Thrift Savings Plan as a U-M Medical School faculty member with an appointment at the VA Ann Arbor Healthcare System reduce your U-M contribution limit. In addition, contributions to another 403(b), 401(k), 408(k)(6) Salary Reduction Simplified Employee Pension Plans (SARSEPs), and SIMPLEs (Savings Incentive Match Plans for Employees) also reduce your U-M limit.
Contact the SSC at (734) 615-2000 to report contributions you have made through another retirement plan. The Benefits Office can enter a contribution limit override so your U-M contributions do not exceed federal limits when combined with those you have made to another retirement plan.
If you make contributions to another plan you may need to lower your contribution at your other employer, lower your contribution at U-M, or contact SSC to request a refund if you have exceeded the limit. It is your responsibility to ensure you do not exceed the federal contribution limit.
IRA Contribution Limits and the U-M Plans
Contributions you make to a traditional IRA (tax-deferred contributions), as well as to a Roth IRA (after-tax contributions), do not reduce how much you may contribute to the U-M Basic Retirement Savings Plan, 403(b) Supplemental Retirement Account (SRA), or the 457(b) Deferred Compensation Plan. If you make up to the maximum contribution to an IRA for which you are eligible, it does not reduce your limit to contribute to any of the U-M plans.
However, there are some IRA limits to keep in mind if you contribute to a traditional IRA or a Roth IRA while also contributing to the U-M plans. For example, you may not be able to deduct all of your contributions to a traditional IRA for income tax purposes if you (and your spouse, if you are married) participate in a retirement plan at work, and your income exceeds IRS limits. In addition, Roth IRA contributions might be limited if your income exceeds a certain level. However, this income limit on Roth IRA contributions does not apply to the U-M Roth 403(b) and U-M Roth 457(b).
View for more information.
How to Enroll or Make Changes Throughout the Year
Contributions are taken from each bi-weekly and monthly paycheck. However, contributions are not taken from off-cycle paychecks.
You may invest your funds with two investment companies — TIAA and Fidelity Investments. Contributions may be allocated to either or both, and contributions may be distributed among the approved investment funds offered.
If you choose to make after-tax Roth contributions, TIAA and Fidelity Investments will track your after-tax contributions and associated earnings separately within your existing U-M account(s). You will not have separate accounts for your Roth contributions.
An emeritus with funding is eligible to enroll in a 403(b) SRA and may do so by downloading and completing the TV Supplemental Retirement Account Emeritus form and faxing it to SSC Benefits Transactions at (734) 763-0363. Use this form to specify the amount you wish to contribute per pay period to TIAA or Fidelity Investments (or both). You cannot enroll using Benefits Self-Service on Wolverine Access.
Temporary Staff Members
U-M temporary staff members are eligible to enroll in a 403(b) SRA and may do so by downloading and completing the Salary or Annuity Option Plan Agreement and faxing it to SSC Benefits Transactions at (734) 763-0363. Use this form to specify the amount you wish to contribute per pay period to TIAA or Fidelity Investments (or both). You cannot enroll using Benefits Self-Service on Wolverine Access.
After you have entered your work hours on your timesheet as a temporary hourly staff member, your timesheet needs to be approved by your department in time for payroll processing to include your 403(b) SRA contribution in your paycheck. This deadline is generally 5 p.m. on Monday during the week your bi-weekly check is scheduled to be issued. Please contact your department if you have questions regarding the deadline to enter your timesheet and the deadline for departmental approval of your reported time.
If You Have a Job Change
To ensure the correct contribution from your paychecks, please review the following scenarios to determine if you need to take action regarding your SRA enrollment due to a job change at the university.
If You Have a Temporary and a Regular U-M Job
- If you enroll in an SRA as a temporary hourly staff member and also enroll as a regular (non-temporary) staff member, you will have two separate SRA enrollment records that will each generate a contribution when associated pay is issued. You may need to adjust one or both SRA contribution amounts as your employment changes with the university, or you may have double deductions occurring if you are issued both temporary and regular earnings.
- If you have both a temporary job and a regular (non-temporary) U-M job, consider increasing the amount of your deduction for your SRA for your regular job rather than electing a separate SRA contribution amount for your temporary job.
- If you are not enrolled in an SRA, enroll online using Wolverine Access for your regular job.
- If you are already enrolled in an SRA for your regular job, you can increase the amount of your contribution using Wolverine Access Self-Service to take into account additional pay from your temporary job. If your temporary job ends, you can decrease your SRA contribution through Wolverine Access Self-Service.
- To make changes to your SRA for your temporary job, download and complete the Salary or Annuity Option Plan Agreement and fax it to SSC Benefits Transactions at (734) 763-0363.
Job Change: Temporary to a Regular U-M Job
- If you change jobs from a temporary to a regular position, you would need to use Wolverine Access to enroll in an SRA for the regular job.
- If you are enrolled in an SRA as a temporary staff member, your SRA enrollment does not carry over to your regular job. You will need to enroll in an SRA as a regular staff member using Wolverine Access.
Please note: If you enroll as a regular staff member and you are still enrolled as a temporary staff member, you may have a double deduction if there is overlap between your last temporary paycheck and your first regular paycheck.
Consider canceling your SRA deduction from your temporary pay to avoid a double deduction by submitting the Salary or Annuity Option Plan Agreement and faxing it to SSC Benefits Transactions at (734) 763-0363.
Job Change: Regular to Temporary U-M Job
- If you change jobs from regular to temporary, you would need to use the Salary or Annuity Option Plan Agreement and fax it to SSC Benefits Transactions at (734) 763-0363 to enroll in an SRA to have a deduction based on your temporary earnings.
- If you are enrolled in an SRA as a regular staff member, your SRA enrollment does not carry over to your temporary job. You will need to enroll in an SRA as a temporary staff member by submitting the Salary or Annuity Option Plan Agreement and faxing it to SSC Benefits Transactions at (734) 763-0363.
Please note: If you enroll in an SRA as a temporary staff member and you are still enrolled as a regular staff member, you may have a double deduction if there is overlap between your last regular paycheck and your first temporary paycheck.
Consider canceling your SRA deduction from your regular job using Wolverine Access to avoid a double deduction. Canceling your SRA from your regular job when it ends also prevents an accidental future contribution in the event you are subsequently reappointed to another regular job.
Extra to Basic SRA Plan
The Extra to Basic Retirement Plan option is not available for new enrollments. Employees who already participate in the Extra to Basic Retirement Plan may make changes, cancel, or re-enroll, but all new enrollments must go to a 403(b) SRA account.
TIAA and Fidelity Investments Websites for U-M Faculty and Staff
Visit these sites at any time to open your account, select your investment funds, and name your beneficiary.