Cash Withdrawals and Loans

Overview

The ability to take a cash withdrawal or loan from your U-M retirement savings plans depends on a number of factors including the plan type, your age, the reason for withdrawal, and if you are a current employee, a former employee or U-M retiree. In some cases you may be subject to taxes and penalties. Talk with a tax professional or financial advisor and ask questions so that you understand the limitations, requirements and consequences before you take any action.

Compare Your Options for Cash Withdrawals and Loans

Following are overviews of your options for making withdrawals or receiving loans from each plan type. For details, see Eligibility and Procedures for Cash Withdrawals and Loans.

Work Status Cash Withdrawals Loans
Basic Retirement Savings Plan
Current Employee Not Available Not Available
Former Employee Employee contributions and earnings at any age, university contributions and earnings at age 55 or older Not Available
U-M Retiree At any age Not Available
Rehired Retiree or Rehired Former Faculty or Staff Member

At age 59½ or older, if you are rehired into a job title that is not eligible to participate in the Basic Retirement Plan

The following job titles are not eligible to enroll in the Basic Retirement Plan and may take a cash withdrawal or rollover at age 59½ or older as a rehired retiree or rehired former faculty or staff member:

  • Temporary hourly
  • Emeritus and emeritus with funding
  • LEO I and Adjunct 49% effort or less

The following job titles are eligible to enroll in the Basic Retirement Plan and cannot take a cash withdrawal or rollover at any age as a rehired retiree or rehired former faculty or staff member:

  • Any appointment effort as regular faculty or staff member, LEO II, III or IV
  • LEO I and Adjunct 50% effort or greater
Not Available
Work Status Cash Withdrawals Loans
403(b) Supplemental Retirement Account (SRA)
Current Employee

At age 59½ or older; hardship; disability

At any age
Former Employee At any age Fidelity 403(b) SRA only
U-M Retiree At any age Fidelity 403(b) SRA only
Rehired Retiree or Rehired Former Faculty or Staff Member At age 59½ or older; hardship; disability At any age
Work Status Cash Withdrawals Loans
457(b) Deferred Compensation Plan
Current Employee At age 59½ or older; one-time withdrawal if account is less than $5,000 when specific conditions are met. See below for details. At any age
Former Employee At any age Fidelity 457(b) only
U-M Retiree At any age Fidelity 457(b) only
Rehired Retiree or Rehired Former Faculty or Staff Member At age 59½ or older; one-time withdrawal if account is less than $5,000 when specific conditions are met. See below for details. At any age