Help: View 403b Retirement Projections

Step-By-Step Instructions

1. Review the View 403b page.
2. To view calculations for the next calendar year, click Recalc for Next Year/Current Date button.
3. To return to the previous year, click the Recalc for Next Year/Current Date button again.

View 403b

Personal Information

Letter	Field/Button	Description
A	FICA	Displays the Federal Insurance Contribution Act (FICA) taxable wage base at which you no longer pay Social Security tax, and which affects the calculations for Compulsory participants.
B	Age	Determines eligibility for the Age 50 catch-up (line 3b), you qualify for a higher limit if you will be age 50 or older by the end of the calendar year.
C	Salary	Displays current rate of base pay; it does not include overtime, shift bonus, incentive pay or any other additional earnings.
D	Earnings Cap	Displays the maximum amount of an employee’s compensation that may be recognized for providing basic retirement plan contributions.
E	403(b) Annual Limit	Displays the annual limit on employee 403(b) elective deferrals. This amount (also shown on line 3a) applies to everyone and does not include catch-ups.

Basic Retirement

Compulsory (lines 2a and 2b):
You are a compulsory participant in the University of Michigan Retirement Plan if you meet all three of the following criteria:

1. You are age 35 or older, and
2. You are working at a 100% appointment, and
3. You have completed two years of service as a regular faculty or staff member.

For compulsory participants, the 5% you contribute to the Basic Retirement Plan is subject to the limit on 403(b) elective deferrals but only on your U-M pay up to the FICA taxable wage base. In other words:

1. Your 5% contribution on your U-M pay under FICA is tax-classified as a 403(b) contribution and counts against the amount you may contribute to the SRA.
2. Your 5% contribution on your U-M pay over FICA is tax-classified as a 401(a) and does not count against the amount you may contribute to the SRA. This allows you to contribute more in SRA contributions than if you were a voluntary participant in the U-M Retirement Plan.

Voluntary (line 2c):
If you are eligible for the Basic Retirement Plan but have not met all three Compulsory criteria above, then you are a voluntary participant.

403(b) Annual Limit

15 Years of Service catch-up (line 3c):
You must meet two criteria in order to qualify for this catch-up:

1. You must have 15 or more cumulative years of service at the University. A year of service is based on your fractional appointment effort and not simply a calendar year. For example, a twelve month appointment at 50% effort is equal to one-half year of service, and
2. Your 403(b) elective deferrals to the U-M Retirement Plan in prior years must average less than $5,000 per year of service.

Per Pay Limit (line 5c):
This is the amount that, if contributed in each remaining pay period, would get you to the annual limit in December provided you meet the enrollment deadlines. Your per pay period contribution is not actually subject to a limit; you may choose to contribute more for a variety of reasons. For example, if you plan to work less than 12 months, you will need to make a larger contribution if you want to reach your annual limit.

For additional information and sample calculations:

www.benefits.umich.edu/plans/retire/index.html

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