2017 House Officer November Lump Sum Payments Saving for Retirement

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1 UNIVERSITY OF MICHIGAN BENEFITS OFFICE WOLVERINE TOWER LOW RISE G SOUTH STATE STREET ANN ARBOR, MI hr.umich.edu/retirement-savings-plans 2017 House Officer November Lump Sum Payments Saving for Retirement The collective bargaining agreement between The University of Michigan House Officers Association and the University of Michigan calls for a lump sum payment to be included in the November 30 th pay. You may direct some or all of the payment to the 403(b) Supplemental Retirement Account and/or to the 457(b) Deferred Compensation Plan as a tax-deferred or after-tax Roth contribution to save for retirement. The 2017 lump sum payment amount by level is listed in the chart below. FICA Withholding All contributions are subject to FICA (Social Security and Medicare tax). You may want to adjust the amount of your contribution by the FICA tax that will be withheld. The chart below illustrates: (A) the amount of the payment; and, (B) the amount you could contribute minus the associated FICA tax withholding to so your net pay is not further reduced by the FICA tax. Tax-Deferred Contributions Tax-deferred contributions are not subject to federal and state income tax withholding when deducted, but are still subject to FICA tax. After-tax Roth Contributions If you make an after-tax Roth contribution, the entire amount is subject to federal and state income tax withholding as well as FICA tax withholding when deducted. Level (A) Lump Sum Payment (B) Lump Sum Payment Minus FICA House Officer I $4,460 $4,119 House Officer II $4,706 $4,346 House Officer III $4,939 $4,561 House Officer IV $5,198 $4,800 House Officer V $5,463 $5,045 House Officer VI $5,740 $5,301 House Officer VII $6,026 $5,565 House Officer VIII $6,315 $5,832 The Benefits Office will be at the House Officer Lounge to answer questions on: October 17 st and October 25 th from 11:30 AM to 1:30 PM FAX your form to (734) by Tuesday, October 31 st

2 403(b) Supplemental Retirement Account (SRA) You contribute a fixed dollar amount; there is no U-M match. Contribute up to $18,000 for 2017; the limit is $24,000 if you are age 50 or older. Withdrawals while you are still employed at U-M are available: 1) at age 59½ or older; or, 2) due to total and permanent disability; or, 3) due to financial hardship. Loans are available. Withdrawals are available at any age once you have terminated employment. Contribute up to $36,000 in total between the 403(b) and 457(b) Contribute up to $48,000 if you are age 50 or older 457(b) Deferred Compensation Plan You contribute a fixed dollar amount; there is no U-M match. Contribute up to $18,000 for 2017; the limit is $24,000 if you are age 50 or older. Withdrawals while you are still employed at U-M are available at age 70½ or older. Loans are available. Withdrawals are available at any age once you have terminated employment. The IRS 10% penalty for withdrawals prior to age 59½ does not apply to the 457(b) but does apply to the Basic Retirement Plan and the 403(b) SRA. Two Ways to Contribute Two Ways to Contribute Tax-deferred Distributions are taxed Roth after-tax Qualified distributions are tax-free Tax-deferred Distributions are taxed Roth after-tax Qualified distributions are tax-free How are the 457(b) and the 403(b) SRA similar? Both plans have the following in common: You can make tax-deferred contributions and/or after-tax Roth contributions. The same investment fund options. The same income options at any age once you have terminated employment. The ability to take a loan at any time. Cash withdrawals and rollovers at any age once you have terminated employment. How are the 457(b) and the SRA different? The IRS 10% penalty on withdrawals made before age 59½ applies to the 403(b) SRA but does not apply to the 457(b). The 403(b) SRA allows cash withdrawals as a current member of the faculty or staff if you become disabled, in the event of financial hardship, or at age 59 ½ or older. These are not available under the 457(b). The 457(b) allows cash withdrawals as an active member of the faculty or staff at 70 ½ or older. The 403(b) SRA may be a good option if: You want the flexibility to cash out the SRA before you terminate employment due to: Disability Financial hardship At age 59½ or older The 457(b) may be a good option if: You anticipate taking a cash withdrawal before age 59½ and want to avoid the IRS 10% early withdrawal penalty. You already contribute the maximum allowable to the 403(b) SRA and want to save more. You do not need to cash out the accumulations before you terminate employment or reach age 70½. IMPORTANT: Information is based on the university s current understanding of complex Internal Revenue Code (IRC) and U.S. Treasury Department regulations. It is provided for general informational purposes only. It is not intended to constitute tax, legal, accounting, estate planning or investment advice. It is the responsibility of the individual to address questions or concerns to a qualified professional.

3 Frequently Asked Questions Saving for Retirement: 403(b) SRA and 457(b) Do I have to do anything to receive the lump sum payment? If you are eligible, the payment will be added automatically to your November 30 th paycheck. Can I invest the lump sum payment? You can direct all or part of the lump sum payment into the U-M 403(b) SRA (Supplemental Retirement Account) and/or the U-M 457(b) Deferred Compensation Plan. Do I have to make a regularly recurring monthly contribution? No, you may sign up for a one-time contribution for November, and no further contributions will occur unless you specify it. You can also direct the lump sum payment to the 403(b) SRA and/or 457(b) as well as sign up for a monthly contribution that will continue. The forms have two locations: one for November s contribution and another for December 2017 and each month going forward. Is contributing mandatory? No. The payment (if you qualify) will be added automatically to your pay unless you elect to contribute it to the 403(b) SRA or 457(b). What is the deadline to direct the November lump sum payment to an SRA or 457(b)? FAX your completed form no later than Tuesday, October 31 st to Is this my only chance to contribute to a 403(b) SRA and/or 457(b)? No. You can start a monthly contribution for the 403(b) SRA or 457(b) anytime. This is being offered now to coincide with the annual lump sum payment to encourage saving for retirement. Is there a University match for contributing to the 403(b) SRA and/or 457(b)? No What is the tax advantage to investing in the 403(b) SRA and/or 457(b)? Both plans allow you to invest with tax-deferred contributions or with after-tax Roth contributions. Contributions you make that are tax-deferred are not subject to state or federal income tax when it is deducted from your paycheck. Taxation occurs when you take a distribution. After-tax Roth contributions are taxed when deducted from your paycheck, so there is no tax advantage at time of withholding. However, qualified distributions are tax-free. Keep in mind that the 7.65% Social Security and Medicare tax will be assessed on the entire lump sum payment. This will reduce your take home pay even if you direct the lump sum payment into the SRA and/or 457(b). In addition, an after-tax Roth contribution is subject to income tax withholding at the time it is deducted from your paycheck. When can I cash out or elect a rollover? Once you have terminated your employment with the University you may cash out the 403(b) SRA or 457(b) at any age or roll it over to an IRA or another employer s retirement plan. You may take a loan at any time. Cash withdrawals that meet IRS definitions of hardship and disability are also available on the 403(b) SRA but not the 457(b).

4 What form do I complete to authorize the 403(b) SRA and/or 457(b) contribution? To contribute to the 403(b) SRA: Complete the Salary or Annuity Option Plan Agreement (TV form) to indicate the amount to contribute for November, and optionally a continuing amount for December and beyond. To contribute to the 457(b): Complete the Salary Deferral Agreement (TX form) to indicate the amount to contribute for November, and optionally a continuing amount for December and beyond. Roth 403(b) SRA & Roth 457(b) Roth contributions are taxed when taken from your paycheck but offer the incentive that qualified distributions are tax-free when made after a 5- taxable-year period of participation and is either made on or after the date you attain age 59½, made after your death, or attributable to your being disabled. In contrast, tax-deferred contributions are not subject to income tax when deducted from your paycheck, but are taxed when you take a distribution. Another incentive to the after-tax Roth 403(b) SRA and Roth 457(b) plans is that you may postpone distributions indefinitely during your lifetime (requires rollover to a Roth IRA) and you can even pass assets tax-free to your heirs. FAX your form(s) to Forms must be received no later than Tuesday, October 31 st to be effective for the November 30 th paycheck. What form do I complete to open an account with TIAA and/or Fidelity? There are no paper applications to fill out to open your account with TIAA and/or Fidelity. Once your properly completed TX and/or TX form has been received by the Benefits Office, an enrollment notice will be sent to your chosen investment carrier(s) to establish your account. TIAA and/or Fidelity will then mail you a packet with information on how to designate your beneficiary. The investment fund will automatically be a TIAA Lifecycle Index or a Fidelity Freedom Index fund, based on your date of birth. You may change this at any time. If you already have a U-M SRA and/or 457(b) account, your contributions will be sent to that account. You may want to review your fund allocations and beneficiaries. Who may benefit from a Roth 403(b) or Roth 457(b)? Those not eligible for a Roth IRA due to IRS income restrictions which do not apply to the U-M Roth plans. Young faculty and staff who have a long retirement horizon that will allow time to amass significant tax-free assets. Those who believe their income tax rates will rise in the future. Those who want tax diversification of having both after-tax and tax-deferred assets as a hedge against potential tax increases. For information on after-tax Roth plans visit: hr.umich.edu/roth-option QUESTIONS? Call the SCC Contact Center at or toll free at U-M 403(b) SRA website hr.umich.edu/403b-sra Can I change my choice of investment funds after I enroll? Yes. You can transfer money among the funds offered by TIAA and Fidelity at any time. U-M 457(b) website hr.umich.edu/457b-deferred-compensation-plan

5 SELECT YOUR FUNDS & BENEFICIARY The enrollment process will default your investment fund and your beneficiary for each plan in which you enroll. You may change these at any time after your account has been created, for example, after you receive the welcome packet from the company. You need to make your designations for each type of plan in which you enroll and for each investment company you select. For example: You enroll in the 403(b) SRA with TIAA and 457(b) with TIAA. You will need to designate your fund choices and beneficiary for each plan type, even though both are with the same investment company. TIAA Online You can create your account at any time, select your investment funds and designate beneficiary online at: Select Enroll Now Click on the type of plan for which you are creating an account: 403(b) Supplemental Retirement Account and/or the 457(b). Follow the online prompts and enter your selections. By Phone Call TIAA at , Monday through Friday from 7 a.m. to 9 p.m. and Saturday from 8 a.m. to 5 p.m. (CT). FIDELITY INVESTMENTS Online You can create your account, select your investment funds and designate your beneficiary online at any time by going to: Select Enroll Click on the type of plan for which you are creating an account: 403(b) SRA and/or 457(b). Follow the online prompts and enter your selections. By Phone: Contact a Fidelity Retirement Services Specialists by calling , Monday through Friday, 8:00 a.m. to midnight, Eastern Time if you have questions or need assistance. THE DEFAULT INVESTMENT FUND A TIAA-CREF Lifecycle Index Fund or Fidelity Investments Freedom Index Fund is a mutual fund that is a diversified portfolio of other mutual funds offered by that company; essentially a fund of other funds. This includes domestic and international stock funds, bond funds, and money market funds. Each Lifecycle Index or Freedom Index Fund automatically selects the allocation of stock, bond, and money market funds that are appropriate for a target retirement date of approximately age 65. The Lifecycle Index and Freedom Index Funds gradually adjust over time to become more conservative by decreasing the underlying equity holdings and increasing the fixed income holdings as the fund s target retirement date nears. The gradual shift into fixed income from equities provides the potential for growth while reduces volatility as the retirement date approaches. TIAA-CREF Lifecycle Index and Fidelity Freedom Index Funds are actively managed; however, the underlying mutual funds within each portfolio are index mutual funds. An index fund is a passive investment strategy that aims to replicate the movements of a specific benchmark that are held constant, regardless of market conditions. Using underlying index funds are a lower cost option to meet your retirement savings goals. Your date of birth will be included in the enrollment notice sent to your chosen investment company. This will determine the specific Lifecycle Index or Freedom Index Fund into which you will be enrolled. Lifecycle Index and Freedom Index Funds provide a simple solution if you lack the time, confidence, or investment knowledge to create and manage a welldiversified portfolio. Each fund is professionally managed and provides you with a simple, single investment fund. U-M RETIREMENT PLAN WEBSITE hr.umich.edu/retirement-savings-plans Cash withdrawals, rollovers, loans and transfers Roth 403(b) SRA and Roth 457(b) Overview of the 403(b) and 457(b) plans Plan handbooks SRA hardship withdrawals & SRA disability withdrawals IRS contribution limits Your quarterly statements Divorce / QDRO Income options in retirement

6 WHICH IS BETTER: TAX-DEFERRED OR AFTER-TAX ROTH? If your income tax rate in retirement: Stays the same as it is now Is higher than your current tax rate Is lower than your current tax rate Which is better: tax-deferred or after-tax? Both yield about the same benefit After-tax Roth yields a higher benefit Tax-deferred products yield a higher benefit 403(b) SRA AND 457(b): TAX-DEFERRED VS. AFTER-TAX ROTH Topic Tax-deferred After-tax Roth Contributions when deducted from your paycheck Not subject to income tax; can reduce your current taxable income. Subject to income tax; will not reduce your current taxable income. Distribution of Contributions Taxable Tax-free Distribution of Earnings Taxable Tax-free if qualified; a qualified distribution is generally a distribution that is made after a 5-taxable-year period of participation and is either: 1. made on or after the date you attain age 59½, 2. made after your death, or 3. attributable to your being disabled, as defined by Internal Revenue Code (IRC) Section 72(m)(7). If a distribution is not qualified any earnings will be taxed as ordinary income. Subject to IRS 10% penalty for distributions prior to age 59½? 403(b) SRA: Yes 457(b): No 403(b) SRA After-tax contributions: no Earnings: yes, unless an exception to the early withdrawal penalty applies (ex. disability). 457(b): After-tax contributions: no Earnings: no

7 Topic Tax-deferred After-tax Roth Estate tax May apply May apply Subject to income tax to beneficiaries in the event of death? Yes Tax-free if the deceased started making Roth contributions more than five tax years prior to distribution. Subject to required minimum distributions at age 70½ once you are retired or terminated from U-M? Yes. Minimum distributions must begin by April 1 of the calendar year following the calendar year you reach age 70½ once you have retired or terminated from U-M. If you are already over age 70½ when you retire or terminate, then you must begin minimum distribution by April 1 of the following calendar year. Rollovers To another tax-deferred 403(b), 457(b), 401(k), 401(a), Traditional IRA and Roth IRA. To another after-tax Roth 457(b), Roth 403(b), Roth 401(k), Roth 401(a) or Roth IRA. Why you might want one Expect to be in a lower tax rate in retirement. Want to lower your current taxable income. Don t want to pay taxes now with the Roth. It can take several years of investment earnings to recoup the amount lost to pay taxes on Roth contributions when deducted from your paycheck. Are close to retirement, expect to start taking distributions and don t have several years to wait for compounding of after-tax Roth contribution earnings to make up for the tax liability paid when Roth contributions are deducted from your paycheck. Don t think you will meet the criteria for distributions of Roth earnings to be tax-free. For example: if the account won t be open for at least 5 years and you won t be at least age 59½ (or disabled or deceased) when a distribution is taken, then the earnings be taxable. Expect to be in a higher tax rate in retirement. Want qualified tax-free distributions in retirement. Want to pass on assets tax-free to heirs. Want option to postpone required minimum distributions at age 70½ (requires roll over to a Roth IRA). Cannot have a Roth IRA due to IRS income restrictions. Want to make after-tax Roth contribution in excess of Roth IRA limits. Have a long retirement horizon that will allow time to accumulate significant tax-free assets in the form of compounding on earnings which can be withdrawn tax-free. Want tax diversification of having both after-tax and tax-deferred assets as a hedge against potential tax increases. Want to contribute the maximum allowable. A qualified Roth distribution may provide more income in retirement than an equivalent distribution from a taxdeferred 403(b) or 457(b) since the Roth distribution is not taxable.

8 TIAA Fidelity Investments What is TIAA? TIAA is the nationwide retirement and financial services system for people who work at more than 15,000 colleges, universities, independent schools, and other nonprofit education, hospital and health care, and research institutions throughout the United States. In fact, the University of Michigan was the first in the nation to offer TIAA in TIAA has the highest rating for insurance financial strength from all four major rating agencies: Moody s; S&P; Fitch; A.M. Best and received the highest ranking for trust in the financial services and insurance industries by The Harris Poll (2010). What are my investment choices? The investment fund is automatically defaulted to an age-appropriate TIAA-CREF Lifecycle Index Fund. You may change this at any time. TIAA-CREF offers more than 40 fund choices, including mutual funds, and fixed and variable annuities. Domestic and international stock funds, bond funds, money market funds and real estate funds are available, along with a guaranteed fixed annuity and socially responsible funds. For a complete list of available investment funds visit: TIAA Institutional Class Mutual Funds All TIAA mutual funds available through the University of Michigan plans are offered under the Institutional share class. The Institutional Class is the share class with the lowest management fees and expenses TIAA offers and charges 25 basis point (¼ of a percent) less in expenses than the Retirement share class that is typically offered through most employers. The low fees mean more of your money remains in your account, working toward your financial future, and your retirement account balances have more earning potential. Where can I find more information? You can meet with a TIAA investment professional by calling What is Fidelity Investments? Fidelity Investments was founded in 1946 by Edward C. Johnson II and today is the largest mutual fund company in the world. Fidelity is one of the nation s top providers of 403(b) retirement savings plans for not-for-profit organizations, including colleges and universities, healthcare institutions, foundations, and charitable organizations. The University of Michigan added Fidelity Investments to its retirement plan in What are my investment choices with Fidelity? The investment fund is automatically defaulted to an age-appropriate Freedom Index Fund. You may change this at any time. Fidelity Investments offers over 100 mutual funds, including domestic and international stock funds, bond funds, money market funds and real estate funds. In addition, the Select Portfolio Funds allow you to invest in highly specialized sectors of the economy. For a complete list of available investment funds visit: Fidelity Freedom Index Funds: Class W The Fidelity Freedom Index Funds available through the University of Michigan plans are offered as Class W shares. Class W is the share class with the lowest management fees Fidelity offers for the Freedom Funds. The low fees mean that more of your money goes to purchasing investments and you keep a higher percentage of the potential returns generated, which can help you reach your retirement goals faster. Where can I find more information? You can meet with a Fidelity Investments professional by calling Fidelity Retirement Specialists TIAA Telephone Counseling Center

9 Fund Management Fees and the U-M Plans Investment carriers pay for operational expenses, portfolio management, record keeping, quarterly statements, general administration, and customer service by assessing fees on its investment funds. The fees are subtracted from the investment returns or earnings of those funds, with the net return being credited to participant accounts. The prospectus of each fund summarizes its various fees. The combination of these fees will generally equal a fund s expense ratio. The expense ratio is reported as a percent of assets under management. There are no sales charges or loads on any TIAA or Fidelity Investments proprietary funds offered through the U-M plans. All transaction fees (ex. for taking a loan, cash withdrawals, etc.) have been waived and there are no account maintenance fees. In addition, U-M does not pay any fees to TIAA or Fidelity Investments. All TIAA mutual funds and the Fidelity Freedom Index Funds available through the University of Michigan plans are offered at the lowest cost share class available. Low fees mean more of your money remains in your account, working toward your financial future, and your retirement account balances have more earning potential. The ticker symbols and expense ratios for the U-M designated default investment funds, TIAA Lifecycle Index and Fidelity Freedom Index, are listed below. Details about all fund choices are available from each investment company's micro site (listed below) developed exclusively for the University of Michigan. TIAA-CREF LIFECYCLE INDEX FUNDS FIDELITY FREEDOM INDEX FUNDS: CLASS W Fund Name Ticker Symbol Net Expense Ratio Fund Name Ticker Symbol Net Expense Ratio Lifecycle Index Retirement Income TRILX 0.10% Lifecycle Index 2010 TLTIX 0.10% Lifecycle Index 2015 TLFIX 0.10% Lifecycle Index 2020 TLWIX 0.10% Lifecycle Index 2025 TLQIX 0.10% Lifecycle Index 2030 TLHIX 0.10% Lifecycle Index 2035 TLYIX 0.10% Lifecycle Index 2040 TLZIX 0.10% Lifecycle Index 2045 TLXIX 0.10% Lifecycle Index 2050 TLLIX 0.10% Lifecycle Index 2055 TTIIX 0.10% Lifecycle Index 2060 TVIIX 0.10% Freedom Index Income: Class W FFGZX 0.10% Freedom Index 2010: Class W FFWTX 0.10% Freedom Index 2015: Class W FIWFX 0.10% Freedom Index 2020: Class W FIWTX 0.10% Freedom Index 2025: Class W FFEDX 0.10% Freedom Index 2030: Class W FFEGX 0.10% Freedom Index 2035: Class W FFEZX 0.10% Freedom Index 2040: Class W FFIZX 0.10% Freedom Index 2045: Class W FFOLX 0.10% Freedom Index 2050: Class W FFOPX 0.10% Freedom Index 2055: Class W FFLDX 0.10% Freedom Index 2060: Class W FFLEX 0.10% Where to Find More Information Information and a breakdown of the fees assessed by TIAA and Fidelity Investments for its funds may be found in each fund s prospectus. A fund prospectus may be requested by phone or downloaded from each carrier s website. You may view an explanation of the types of fund management fees at: benefits.umich.edu/plans/retire/fundfees.html Information on a fund s current and historical investment performance, as well as benchmarks, may also be found online at TIAA and Fidelity Investments. In addition, you may also provide direction on your investment choices by calling TIAA and Fidelity Investments at the phone numbers listed below or through their secure websites. TIAA Fidelity Investments

10 TV Salary or Annuity Option Plan Agreement For Tax-Deferred and/or after-tax Roth 403(b) contributions at the University of Michigan House Officers November 2017 Election Please print in black ink. On this form, you authorize the amount(s) to be deducted from your salary and contributed to a tax-deferred 403(b) retirement account on your behalf. For Internal Use Only Event Date: Elections Input By: FAX to: (734) by 10/31/ House Officer Information. Name (Last, First, Middle Initial) UMID # Pager # Daytime Phone FAX 2. Amount to be Contributed Per Pay Period. November 2017 Indicate the total amount to be contributed; this should be: 1) The amount to be contributed from the lump sum payment plus 2) Any monthly SRA contributions currently in effect. December 2017 and Future Pay Periods All contributions will be canceled effective with the December pay unless you indicate an amount below to be contributed with each pay period beginning with December This amount will generally continue until you change or cancel it. TIAA SRA: Tax-deferred $ TIAA SRA: Tax-deferred $0 TIAA SRA: After-tax Roth $ TIAA SRA: After-tax Roth $0 Fidelity SRA: Tax-deferred $ Fidelity SRA: Tax-deferred $0 Fidelity SRA: After-tax Roth $ Fidelity SRA: After-tax Roth $0 Total for November 2017 $ Total On-Going Contribution $0 3. Tax Deferring Agreement, Certification and Signature. Your Signature is required below. 1. I understand and agree to the following terms and conditions of this salary reduction agreement, including the amount of the salary reduction, effective date, and choice of investment carrier(s) with respect to my University of Michigan compensation and my tax-deferred 403(b) and/or designated Roth after-tax contributions. I understand I use this form to authorize tax-deferred and/or designated after-tax Roth contributions to be contributed from my salary to a 403(b) retirement account on my behalf. 2. This Agreement is legally binding and irrevocable between the University of Michigan and myself. If the University of Michigan modifies future versions of this Agreement to comply with federal law or regulations, I agree that this Agreement shall be administered according to such modified Agreements. I agree to hold harmless and indemnify the University of Michigan for any and all liability and expenses by it as the result of any misstatement or omission made by me in this Agreement. This Agreement revokes any previously signed Agreement. This salary reduction agreement is covered under and shall be interpreted consistent with U.S. Treasury Regulations. This Agreement will generally become effective with respect to University of Michigan compensation paid on or after the date I sign it and the Benefits Office approves it. 3. During the year, the Benefits Office will lower or suspend my contribution if the my salary reduction will cause me to exceed the Internal Revenue Code (IRC) 402(g), 401(a)(17), and/or 415 limits. If my contribution is lowered or suspended to keep me within IRC limits, my elected amount will generally resume the following year. If I participate in another tax-deferred plan outside the U-M, I need to contact a tax advisor to ensure I do not exceed IRC limits. 4. I understand that Roth contributions I make will be designated irrevocably as after-tax, that these amounts will be included in my gross income at the time I would have otherwise received the amount in cash if I had not made the election, and that my designated Roth contributions are subject to all applicable wage-withholding requirements. 5. I will not be automatically enrolled in the U-M Basic Retirement Savings Plan as a result of a change in job title or appointment effort, even if I already contribute to the 403(b) SRA. My participation in the 403(b) SRA will generally cease if I experience a change in job title between temporary and regular and that it is my responsibility to reenroll in the SRA if my job title or effort changes. Signature Date U-M Benefits Administration Office Retirement Savings Plan, G405 Wolverine Tower, 3003 South State Street, Ann Arbor, MI Phone: (734) FAX to: (734)

11 TX Salary Deferral Agreement University of Michigan 457(b) Deferred Compensation Plan House Officers November 2017 Election On this form, you authorize the amount(s) to be contributed from your salary to a tax-deferred 457(b) deferred compensation plan on your behalf. Please print all information in black ink. For Internal Use Only Event Date: Elections Input By: FAX to: (734) by 10/31/ House Officer Information. Name (Last, First, Middle Initial) UMID # Pager # Daytime Phone FAX 2a. Salary Deferral Amount NOVEMBER 2017 Enter whole dollar amounts only. If you already defer compensation and are changing the amount, indicate the new total amount of the deferral, not just the amount of the change. I request to defer my eligible U-M compensation into the U-M 457(b) deferred compensation plan by the amount indicated below. TAX-DEFERRED $ AFTER-TAX ROTH $ TOTAL FOR NOVEMBER 2017 $ DECEMBER 2017 AND FUTURE PAY PERIODS Enter the amount of compensation you wish to defer per pay period (enter whole dollar amounts only). This amount will remain in effect until you submit another form to change or cancel it. If you already defer compensation and are changing the amount, indicate the new total amount of the deferral, not just the amount of the change I request to defer my eligible U-M compensation per pay period into the U-M 457(b) deferred compensation plan by the amount indicated below. TAX-DEFERRED $ 0 AFTER-TAX ROTH $ 0 TOTAL ON-GOING DEFERRAL $ 0 3. Salary Deferral Agreement and Signature I understand and agree to the following terms and conditions: 1. This Agreement is legally binding and irrevocable between the University of Michigan and myself. 2. The Internal Revenue Code (IRC) limits the aggregate amount an individual taxpayer can tax-defer. During the year, the Benefits Office will lower or suspend my salary deferral contribution if it will cause me to exceed the IRC 457(b)(2), 457(b)(3), or 414(v) limits. If my contribution is lowered or suspended during the year to keep me within IRC limits, my elected amount will generally resume the following year. If I participate in a 457(b) plan outside of the University of Michigan, I may need to consult with a tax advisor to ensure I do not exceed IRC limits. 3. I agree to hold harmless and indemnify the University of Michigan for any and all liability and expenses by it as the result of any misstatement or omission made by me in this Agreement. 4. This Agreement revokes any previously signed Agreement. 5. This Agreement shall become effective as soon as administratively feasible, with respect to University of Michigan compensation not yet earned, but not earlier than the first day of the month following the date this Agreement is filed with the Benefits Office. 6. This salary reduction agreement is covered under and shall be interpreted consistent with U.S. Treasury Regulations. 7. If the University of Michigan modifies future versions of this Agreement to comply with federal law or regulations, I agree that this Agreement shall be administered according to such modified Agreements. 8. I understand my deferred compensation and earnings cannot be withdrawn until I have terminated employment, or as an employee, I am age 70½ or older, or elect a one-time withdrawal pursuant to IRC Section 457(e)(9)(A). 9. I understand this form does not enroll me in the University of Michigan Basic Retirement Plan or change any elections I have made with regards to the University of Michigan Basic Retirement Plan or Supplemental (SRA) Retirement Plan. 2b. Investment Company I request to allocate the deferral amount indicated in Section 3a to the investment company(ies) as indicated below. (Check one) 100% TIAA 100% Fidelity Investments 50% TIAA & 50% Fidelity Investments Other: % TIAA & % Fidelity Signature Date U-M Benefits Administration Office Retirement Savings Plan G405 Wolverine Tower 3003 South State Street Ann Arbor, MI Phone: (734) FAX: (734)