Faculty and staff in need of a refund from the U-M retirement savings plans (Basic Plan, 403b SRA or 457b) due to excess contributions for 2019, when combined with elective deferrals to retirement plans other than U-M plans, should submit a refund request to the Benefits Administration Office by March 6, 2020. Please fax the following items to 734-936-8835:
Your 2019 W-2 for the other employer through which you have made elective deferrals to a retirement plan that caused the 2019 annual limit to be exceeded when combined with your U-M retirement plan elective deferrals; and
A letter requesting the refund with the amount of the excess elective deferral you are requesting as a refund. Be sure to include your contact information (email, phone number, etc.) where you may be reached.
What Happens Next
TIAA and Fidelity will issue the refund directly to you, along with a 1099-R to document the refund as a transaction to include with your 2019 tax filing. TIAA and Fidelity will also refund any earnings associated with the excess deferral, which will be subject to taxation as a 2020 tax year transaction when you file your return in 2020.
If You Miss the Deadline
Requests for a refund received after March 6, 2020 will continue to be processed. However, TIAA and Fidelity cannot guarantee they will be completed in time for the April 15, 2020 filing deadline for the 2019 tax year. Excess deferrals you have made for the 2019 year that are not refunded in time for the April 15, 2020 tax filing deadline cannot be refunded, per federal tax regulations. The excess is subject to taxation for 2019 and will be subject to taxation again at the time of distribution in the future. This will result in a double taxation of the excess that was not refunded. Consult a qualified tax advisor for more information.