457(b) Retirement Savings Plan
WSU offers this 457(b) Retirement Savings Plan as part of an excellent benefits package because our university success depends on the talent of our faculty and staff. You can save before-tax (i.e., the amount you contribute is deducted from your pay before income taxes are taken out) and reduce your taxable income. This plan is established under Section 457(b) of the Internal Revenue Code. Download the Plan Document to learn more.
Double Your Retirement Savings: The employee contribution limit for the 457(b) plan is separate from the 403(b) plan, so you can defer $20,500 in pre-tax dollars (or $27,000 if age 50 or older) in addition to the limit under the 403(b) Plan.
No Early Withdrawal Penalty: The IRS does not impose the 10% penalty if you withdraw your funds before you are age 59-1/2; however, you may only make withdrawals from the 457(b) plan after you terminate your employment with WSU.
Same Quality Investment Choices: The 457(b) Plan offers the same TIAA and Fidelity Investments as the 403(b) Plan. The TIAA Traditional Account under the 457(b) Plan is a GSRA contract, so there are no surrender charges when you take a lump sum cash option within 120 days.
or follow these steps:
- Log into Academica
- Click 'Employee Resources'
- Click 'Employee Self Service'
- Click 'Retirement Savings Plan Enrollments and Changes'
- Eligibility & General Information
Any employee who is eligible for the 403(b) plan is also eligible for the 457(b) plan (excluding Part-time Faculty and Skilled Trades).
An eligible employee classification includes employees who normally work 20+ hours per week OR have an appointment of at least 50% OR union employees whose bargaining contract permits participation.
Student assistants, Technicians, Graduate Assistants, Part-time Faculty, Skilled Trades and Temporary employees are NOT eligible to participate.
You may start your employee contributions any time after your date of hire in an eligible classification. NEW first-time 457(b) contributions will be effective on the first pay date of the next month after enrollment is completed.
For calendar year 2022, the amount contributed is limited to $20,500/$27,000 (under age 50/over 50). This maximum includes any employee contributions made to 457(b) plans sponsored by other employers. These limits are indexed each year by the Internal Revenue Service. Contributions to this plan are in addition to (separate from) contributions to the 403(b) plan. The limits for each plan are separate, so you can contribute $20,500 (or $27,000 if over age 50) to both the 403(b) and the 457(b) plan.
Wayne State University limits the percentage amount you can contribute for any one paycheck to 80% of gross pay (considering both 403(b) and 457(b) plan contributions). This is necessary to ensure that you have compensation remaining to cover other employee benefits costs.
Contributions must be made in WHOLE percentage increments to each of the investment carriers.
There are NO university matching contributions in the 457(b) plan.
"Vesting" in a retirement plan means ownership. Employee contributions are fully vested at all times. This means the amounts cannot be forfeited, even if you terminate your employment with WSU.
- Investment Options
This investment carrier offers variable and fixed annuities (called the guaranteed option, or TIAA Traditional account) as well as 5 mutual funds and 10 lifecycle funds. The Group Supplemental Retirement Annuity (GRSA) is the investment vehicle for the Traditional Account. The Plan number is 403609.
This investment carrier offers 150+ mutual funds, including money market, stock and bond funds and an array of pre-mixed Freedom Funds. The Plan number is 84976.
- Accessing Savings
Plan Loan Information
There are no loans available from the 457(b) Plan.
Unforeseeable Emergency Distribution
You may withdraw from the Plan in the event of an unforeseeable emergency, which includes the following:
- Sudden and unexpected illness or accident of the participant or of a dependent of the participant.
- Loss of the participant's property due to casualty.
- The need to pay for the funeral expenses of the participant's spouse or dependent.
- Imminent foreclosure of or eviction from the participant's primary residence.
- The need to pay for medical expenses and cost of prescription drug medication.
- Other similar, extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant
Generally, cash withdrawals are subject to a 20% Federal income tax withholding. The Early Withdrawal Penalty (10%) does NOT apply.
Cash Withdrawal Information
Your employee contributions are made on a pre-tax basis. Thus, Federal and state income taxes are deferred until you withdraw your vested account balance as cash. Any investment return on your contributions are tax-deferred, and also subject to tax upon cash withdrawal, as shown on the chart below.
Events that permit Cash Withdrawals
Early Withdrawal Penalty before Age 59-1/2
20% Federal Tax Withholding
Termination of employment at any age
Federal Tax Withholding
Generally, cash withdrawals are subject to a 20% Federal income tax withholding. The Early Withdrawal Penalty (10%) does NOT apply
Leaving the university
Once you terminate your employment from Wayne State University, you may elect any of the following distribution options:
- Retain your WSU account - leave your vested account balance with your current Investment Carrier (inside the WSU 457(b) Retirement Plan) until some later date. Later, you can take cash withdrawals or arrange to annuitize your vested balance.
- Rollover to your next employer's plan - roll your vested account balance into another qualified plan of your new employer.
- Rollover to an IRA -roll your vested account balance into an IRA
- Cash withdrawal - elect a cash income option (subject to 20% Federal income tax withholding and 10% Early Withdrawal Penalty if you are age 59-1/2 or less).
- Annuity option - elect an annuity option from TIAA. When you "annuitize" your account balance, you may select regular cash payments in the form of a single life annuity, joint and survivor annuity, fixed period certain annuity. There is no requirement that you elect an annuity as an option if your funds are invested with TIAA.
- Investment Carrier Contact Information
Investment Carrier Contact Information
Call to schedule: 1-800-732-8353
Call to schedule: 1-800-642-7131
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