Current and former employees now have more opportunities and fewer restrictions when contemplating cash withdrawals from two U-M retirement plans.
Age and other qualifying restrictions have been eliminated to expand opportunities for active employees to take cash withdrawals from the employee contribution portion of the U-M Basic Retirement Plan. The biggest change is for former employees, who now can take cash withdrawals from employee and university contributions to the Basic Retirement Plan at any age.
Basic Retirement Plan
Current Employees
Revised policy allows current employees to take cash withdrawals from their 403(b) 5% employee contribution in the Basic Retirement Plan, provided they meet the following criteria:
- Total or permanent disability, or
- IRS-qualifying hardship, or
- Age 59½ and older
The revision does not apply to the Basic Retirement Plan 10% university contribution.
Rehired retirees and rehired former employees, however, are able to take cash withdrawals from the 5% employee contribution and the 10% university contribution at age 59½ and older.
Employees in phased retirement status also may take withdrawals from the 5% employee contribution and 10% university contribution at age 59½ and older.
Former Employees
Former employees may take cash withdrawals from their Basic Retirement Plan 5% employee contribution, as well as the 10% university contribution at any age.
Previously, a former employee had to be age 55 or older to enact a cash withdrawal from the 10% university contribution.
Additional Withdrawal Opportunities
The new withdrawal guidelines also allow current employees enrolled in U-M’s 457(b) Deferred Compensation Plan to take withdrawals if they have a financial hardship caused by an unforeseeable emergency.
For details, visit the Cash Withdrawal and Loans web page.
For More Info…
If you plan to make a withdrawal from the Basic Retirement Plan or the 457(b) or would like more information, contact TIAA or Fidelity Investments:
- Fidelity: (800) 343-0860, Monday - Friday from 8 a.m. - midnight (Eastern Time)
- TIAA: (800) 842-2252, Monday - Friday from 8 a.m. - 10 p.m. (Eastern Time)
