Small adjustments can equal big retirement savings

December 14, 2022  //  FOUND IN: Updates & Resources

There’s good news for those planning to beef up their retirement investments in 2023. Contribution limits have increased for two of U-M’s retirement savings plans.

Put away more in 2023

Why revisit your contributions now? Financial experts agree that small increases can add up to big savings when given time to grow.

Faculty and staff invested in the 403(b) Supplemental Retirement Account (SRA) and 457(b) Deferred Compensation Plan can now save more for the future. The Internal Revenue Service recently announced increased annual contribution limits for 2023:

  • For employees younger than age 50: increase from $20,500 to $22,500
  • For employees ages 50 and older: $30,000 for each plan

The limit includes your 5 percent 403(b) Basic Retirement Plan contribution.

Consult updated calculators

U-M’s 403(b) and 457(b) calculators in Wolverine Access have been updated with contribution limits for the rest of 2022 and for 2023. To view them:

  • Select Faculty & Staff > Employee Self-Service > Benefits > Calculate Ret. Contribution.
  • The View tabs for the 403(b) and 457(b) plans are at the top, left side of the page. 
  • The “As of Date” in the upper right margin should read the current date and limit for 2022.
  • Click “Recalc for Next Year” to calculate the limit for the following calendar year.

For more information on saving for retirement, click here.