Current and former employees now have more opportunities and fewer restrictions when contemplating cash withdrawals from two U-M retirement plans.
In February, executive leadership approved eliminating age and other qualifying restrictions to expand opportunities to take cash withdrawals. The biggest change is for former employees, who now can take cash withdrawals from employee and university contributions to U-M’s Basic Retirement Plan at any age.
Revised policy allows current employees to take cash withdrawals from their 403(b) 5% employee contribution in the Basic Retirement Plan, provided they meet at least one of the following criteria:
- Total or permanent disability.
- IRS-qualifying hardship.
- 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 the 10% university contribution at age 59½ and older.
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.
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.
Those planning to make a withdrawal from the Basic Retirement Plan or the 457(b) or would like more information should contact TIAA or Fidelity Investments, the longtime administrators of U-M’s retirement plans:
- Fidelity: 800- 343-0860, 8 a.m. to midnight (Eastern Time) Monday through Friday.
- TIAA: 800-842-2252, 8 a.m. to 10 p.m. (Eastern Time) Monday through Friday.
