Tag: retirement

A doctor taking a patient's blood pressure.

Your Benefits: End-of-Year Checklist 

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The end of the year is fast approaching! While you probably don’t need one more task on your to-do list, make sure you’ve used all your 2025 plan year benefits before the year ends.   

  1. Schedule appointments for any missed annual check-ups: If you’re behind on annual check-ups or screenings—such as a wellness exam, dental cleaning, or vision exam—consider scheduling appointments before the end of the year.  
  1.  Be proactive in case of illness: Teladoc is an online medical care service that gives you 24/7 access to a health care professional via the web, phone, or mobile app in minutes. A doctor can even write you a prescription if necessary. Enroll in Teladoc now so you’re prepared when illness strikes.  Available to employees and their dependents who are enrolled in an MSU health plan.  
  1. Note flexible spending account (FSA) deadlines for 2025 plan year funds: If you are enrolled in a health care or dependent care FSA for the 2025 plan year, you have a grace period in 2026 to use these funds. Be sure to use 2025 plan year funds by March 15, 2026, and submit your receipts by April 30, 2026. If you miss the grace period deadline, the IRS requires you to forfeit any unused funds, so plan your remaining expenses for the coming months. View FSA information.  
  1. Review your retirement contributions: The IRS sets new retirement contribution limits each year (the 2026 limits will be shared in January). Make sure you’re saving as much as you can by reviewing the 2025 IRS retirement contribution limits and adjusting contributions for the remainder of the year, if needed.  
  1. Take advantage of special employee discounts for holiday shopping: Visit the MSU Benefits Plus website for deals and discounts on everything from travel and experiences to electronics and toys. 
  1. Schedule any vacation/personal PTO: Taking time to rest and reset is important to maintain your health. Make sure you use all your paid time off (PTO) by planning and scheduling your time off in advance with your supervisor’s approval. This year, the full Winter Break (including Christmas and New Year’s holidays) extends from Thursday, December 25, through Friday, January 2. View the Holiday Schedule for more details. 
  1. Use educational assistance funds: Support staff and academic specialist employees have access to educational assistance funds to use toward professional development opportunities. These funds reset each fall, so don’t miss out. If you’re looking for learning opportunities this year, it’s not too late to sign up for a course offered by HR’s Organization and Professional Development department.    

We hope this list will help keep you on track as you plan how you and your family will use your employee benefits for the rest of the year. You can learn more about all these benefit options on the HR website.   

a person putting money in a pink piggy bank.

Roth Catch Up Requirement and New Retirement Savings Options 

Published on by MSU Human Resources2 Comments

This article was updated on November 26 with the 2026 IRS Contribution Limits.

To help us learn more about SECURE 2.0 Act and its new Roth options and requirement for certain Catch-up contributions, we talked to Dan, our Retirement Plan expert. Read our Q and A and review available resources to help you determine whether the Roth Catch-up requirement applies to you, if a new Roth savings option might benefit you, and about an increased savings option for those turning 60-63 in 2026.  

What is the SECURE 2.0 Act?  

Dan: In December 2022, the Setting Every Community Up for Retirement Act of 2022 (SECURE 2.0 Act) was signed into law. The retirement legislation includes significant changes that could help strengthen the retirement system and improve Americans’ financial readiness for retirement. Among a few changes, a big one is the Roth Catch-up requirement for certain people.  

What is the Roth requirement for Catch-up contributions?  

Dan: Starting in 2026, employees turning age 50 or older who earned more than $145,000* in the previous year (2025) must make any age 50 Catch-up contributions as after-tax Roth savings.  

* FICA wages found on your Form W-2 Box 3 wages 

What are the retirement contribution requirements and options based on my age and income, according to SECURE 2.0 Act?  

Dan:  Here is a helpful chart to illustrate the new requirements and available options under SECURE 2.0 Act based on your income, age, and whether you make Catch-up contributions:  

If you:Required ActionAvailable OptionsNotes
Earn more than $150,000* AND will be age 64 or older* in 2026 Any Catch-up contributions (up to $8,000*) MUST be after-tax Roth contributions Make your regular contributions as either pre-tax or after-tax Roth Catch-up contributions CANNOT be pre-tax 
Earn more than $150,000* AND will be ages 60-63* in 2026 Any Catch-up contributions (up to $11,250*, 150% of the standard Catch-up amount) MUST be after-tax Roth contributions Make your regular contributions as either pre-tax or after-tax Roth Catch-up contributions CANNOT be pre-tax 
Earn more than $150,000* AND will be ages 50-59* in 2026 Any Catch-up contributions (up to $8,000*) MUST be after-tax Roth contributions Make your regular contributions as either pre-tax or after-tax Roth Catch-up contributions CANNOT be pre-tax 
Earn more than $150,000* AND will be under age 50* in 2026 No required action Make your regular contributions as either pre-tax or after-tax Roth  
Earn LESS than $150,000* AND will be age 64 or older* in 2026 No required action Make your regular contributions and your Catch-up contributions (up to $8,000*) as either pre-tax or after-tax Roth  
Earn LESS than $150,000* AND will be ages 60-63* in 2026 No required action Make your regular contributions and your Catch-up contributions (up to $11,250*, 150% of the standard Catch-up amount) as either pre-tax or after-tax Roth  
Earn LESS than $150,000* AND will be ages 50-59* in 2026 No required action Make your regular contributions and your Catch-up contributions (up to $8,000*) as either pre-tax or after-tax Roth  
Earn LESS than $150,000* AND will be under age 50* in 2026 No required action Make your regular contributions as either pre-tax or after-tax Roth  

 Notes: 

*Based on the IRS 2026 limits. Ages are based on the age you will be on December 31, 2026. 

**Based on 2025 FICA “Social Security wages” from box 3 of the 2025 MSU W-2 Form. 

***The current pre-tax contribution and the new after-tax Roth option will be subject to the 2026 IRS limits for both their regular employee contributions (currently $24,500) and the Age 50 Catch-up (currently $8,000). 
 

What are the benefits of contributing to a Roth? 

Dan: Unlike traditional pre-tax contributions to a 403(b) or 457(b) account, after-tax Roth contributions allow you to withdraw that money tax free once you retire. So, while you’re still paying taxes on your earnings now, you may enjoy a reduced tax obligation in the future.  

Are there downsides to a Roth contribution?  

Dan: A couple of considerations include the tax implications and timing requirements. First, Roth contributions are withheld after your taxes are deducted, meaning you will pay more in tax with each paycheck and receive less take home pay. Second, you must wait at least five years after your first after-tax Roth contribution and you must be at least 59 ½ years old to make a tax-free withdrawal.  

I am not required to make after-tax contributions, but I’m interested in the opportunity. What do I do?  

Dan: Beginning in January, you can log into the EBS Portal and make changes to your 403(b) Supplemental and/or 457(b) Deferred Compensation accounts to move your current pre-tax contributions to the new after-tax Roth option. The 403(b) Base account will remain available only for pre-tax contributions.  

I’m turning 60-63 in 2026, and I heard about a new retirement savings option for Catch-up contributions. What’s that?  

Dan: If you make Catch-up contributions and you’re turning 60-63 anytime in the calendar year, MSU will begin offering a new option that allows your Catch-up amount to be 150% of the regular Age 50 Catch-up amount.  

Once you reach the regular employee contribution limit in your MSU 403(b) Supplemental and/or 457(b) Deferred Compensation accounts, you can add even more to your Catch-up contributions. Based on 2025 IRS limits, you could save $11,250 instead of the regular $7,500 limit for Age 50 Catch-up. The 2026 IRS limits will be announced soon.  

Where do I find more information about SECURE 2.0 Act, Roth and MSU’s Retirement Plans?  

Information about the MSU retirement plans is available on the HR webpage, Available Retirement Plans. 

Details about switching to after-tax Roth contributions in the MSU retirement plans will be available in January. 

Resources: SECURE 2.0 Act and Roth options 

Fidelity: 

TIAA: 

a person putting money in a pink piggy bank.

Your Top Questions About MSU’s Optional Retirement Plans

Published on by MSU Human ResourcesLeave a comment

Whether this is your first job out of school or you’ve been working for 40+ years, it’s important to make sure you’re taking advantage of every opportunity to prepare for your eventual retirement. Most benefit-eligible employees* are aware of and enrolled in the 403(b) Base Retirement Program (BRP) offered by MSU, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10% – an immediate two for one match of your investment – for a total contribution of 15%. While this provides an excellent foundation for your retirement savings, most employees will eventually want to consider additional savings options for their retirement.

In addition to the BRP, eligible employees also have the option of enrolling in two additional retirement programs: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. Enrollment in one or both optional programs can help employees meet their retirement savings goals, making it easier for them to transition to retirement.

We’ve compiled a list of the top questions we receive as employees think about enrolling in these optional plans:

  • Q: Is there a minimum contribution amount required for one of the optional plans? What about a maximum amount?

    A: Employees may elect any percentage contribution, as all contributions are based on a percentage of eligible pay. For example, 1.50% would be an acceptable contribution election. Employees wishing to contribute a certain amount, such as $100 per paycheck, can use the calculator to convert a dollar amount to a percentage.

    Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year. Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at maximizing your retirement plan contributions.

  • Q: Does contributing a small amount, such as $25 a month, make a difference in the long run?

    A: We encourage employees to work with their financial advisors or retirement vendors for assistance in deciding how much more to contribute. You may be surprised how a small contribution over a long time can impact your retirement account balance, and you may want to take advantage of compounding earnings as you save for retirement.

  • Q: What are the main differences between the 403(b) Supplemental and the 457(b) Deferred Compensation Plan?

    A: Generally, the differences are when an individual can access the funds and the loan provisions. Also, the 403(b) Supplemental contributions must be added with the Voluntary 403(b) Base contributions when calculating the IRS maximum contributions, whereas the 457(b) Deferred Compensation Plan has a separate IRS maximum limit. A more detailed comparison of the two different optional accounts can be found in the Retirement Plans Comparison chart.

  • Q: Can I enroll in an optional retirement plan account at any time?

    A: Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors. Depending on payroll schedules and deadlines, there may be a delay when contributions start or stop. For more detailed information, please visit the HR website at Enroll or Make Changes to Retirement Plans.

For more information about available retirement plans from MSU, please review the retirement resources on the HR website and the MSU Retirement Plans Enrollment Guide. Find instructions to enroll in these optional retirement plans at any time throughout the year. Please contact the HR Solutions Center with any questions at SolutionsCenter@hr.msu.edu or 517-353-4434.

*Note: Certain types of employees are excluded from participating in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more details. 

A milestone honoree with Sparty during the event reception at the Kellogg Center.

Congrats to the MSU Service Milestone and Retirement Recognition Honorees!

Published on by MSU Human Resources1 Comment

This year, the MSU Service Milestone and Retirement Recognition Program recognized support staff employees celebrating a 15, 20, 25, 30, 35, 40, 45, 50, or 55th work anniversary in 2024-25 or a retirement in 2024. Review the 2025 Reception Program and see if you recognize any names on the list—be sure to reach out and congratulate them! 

On April 14, we celebrated over 1,000 employees observing long-term work anniversaries and retirements during an awards ceremony at the Kellogg Center. Our university’s development and growth have been, in large part, due to the contributions made by our staff members, particularly those who have chosen to remain in the service of the university. This occasion was dedicated to those who have served the university through the years of its greatest development. It is a tribute to those who have found satisfaction in helping others and creating an impact for a better world.  

  • Vennie Gore, Executive Vice President for Administration, speaking at a podium during the opening remarks.
    Vennie Gore, Executive Vice President for Administration, addresses the honorees during the opening remarks.
  • Donna Donovan, Interim Associate Vice President for Human Resources, speaking at a podium during the opening remarks.
    Donna Donovan, Interim Associate Vice President for Human Resources, addresses the honorees during the opening remarks.
  • Todd Bradley, Senior Human Resources Professional, speaking at a podium during the event.
    Special thanks to Todd Bradley, Senior Human Resources Professional, for emceeing the event.
  • A large crowd of service milestone and retirement honorees and their guests enjoy the reception at the Kellogg Center.
    Service milestone and retirement honorees and their guests enjoy the reception at the Kellogg Center.
  • Some honorees are standing during the ceremony to acknowledge their years of service to the university.
    Some honorees are asked to stand during the ceremony to acknowledge their years of service to the university.
  • Sparty high fives milestone honorees during the reception.
    Sparty high fives milestone honorees, colleagues, friends, and guests during the reception.
  • Three milestone honorees pose for a photo.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • Seven milestone attendees pose for a photo during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • Two milestone attendees pose for a photo during the reception.
    Milestone honorees during the event at the Kellogg Center.
  • Two milestone honorees pose for a photo during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • Donna Donovan (left), Interim Associate Vice President for Human Resources stands with Thomas Jeitschko, Interim Provost and Executive Vice President for Academic Affairs.
    Donna Donovan (left), Interim Associate Vice President for Human Resources with Thomas Jeitschko, Interim Provost and Executive Vice President for Academic Affairs.
  • Five milestone honorees pose for a photo with the Sparty mascot during the reception.
    Milestone honorees, colleagues, friends, and guests with Sparty.
  • Three milestone honorees during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • Two milestone honorees during the reception.
    Milestone honorees during the event at the Kellogg Center.
  • A milestone honoree with Sparty during the reception.
    A milestone honoree with Sparty.
  • A milestone honoree with Sparty.
    A milestone honoree with Sparty.
  • Five milestone honorees during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • Three milestone honorees during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.
  • A milestone honoree with Sparty.
    A milestone honoree with Sparty.
  • Six milestone honorees during the reception.
    Milestone honorees, colleagues, friends, and guests during the event at the Kellogg Center.

Executive Vice President for Administration, Vennie Gore, and Interim Associate Vice President for Human Resources, Donna Donovan, acknowledged service milestone and retirement honorees and expressed their gratitude during the ceremony. We’d like to extend a special thanks to Todd Bradley, Senior Human Resources Professional, for emceeing the event.  

You can watch the opening remarks from the event below or on YouTube.

The university thanks these honorees for their talent, passion, loyalty, and contribution to our shared purpose. If you see a colleague’s name in this year’s awards program, don’t forget to congratulate them! 

All photo credit: Dane Robison/TimeFramePhoto 
All video credit: Cheeney Media Concepts 

Person with calendar and laptop

Don’t Wait to Create a Retirement Savings Plan

Published on by MSU Human ResourcesLeave a comment

We are committed to helping our employees prepare for a successful retirement by offering several retirement savings plan options, along with tools and resources to help you reach your goals.

Most benefit-eligible employees are enrolled in the 403(b) Base Retirement Program, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10%. That’s an immediate two-for-one match of your investment for a total contribution of 15%. While this provides a great foundation, you may want to consider additional savings options. MSU also offers two additional savings accounts: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. For more information about these two accounts, read Your Top Questions about MSU’s Optional Retirement Plan Options.

How to Make a Retirement Savings Plan

It’s normal to have many questions when you start to plan for your retirement:

  • How early should I start planning?
  • How much do I need to save to retire comfortably?
  • Which plan(s) should I contribute to?
  • What can I do to maximize my savings?
  • Are my retirement goals attainable?

The answers will depend on your financial situation and retirement goals. We strongly encourage all MSU employees to make an appointment with their retirement vendor – Fidelity or TIAA – to discuss their options and develop a personalized savings plan. Fidelity and TIAA are financial professionals who can provide helpful strategies, tips, and actionable steps that can help you take charge of your finances.

Additionally, both Fidelity and TIAA have numerous resources – including articles, webinars, interactive tools, and more – to help you learn about saving for retirement and other financial goals.

Don’t Wait to Save: The Power of Compounding Interest

For younger MSU employees, creating a comprehensive retirement savings plan may not be a top priority. Between student loans, rent, childcare, and more, it can be difficult to set aside money for a day 30 to 40 years in the future. But the young have a huge advantage when it comes to saving money for retirement: more time. This additional time allows them to potentially benefit the most from compounding interest, which may lead to greater savings down the road.

Compounding interest basically means allowing an investment to earn money while continually reinvesting those earnings over time. The more time you have, the smaller your original investment may need to be. In the hypothetical example below, a 25-year-old starts saving $5,000 annually ($416 per month), and a 40-year-old starts saving twice as much but waits until age 40 ($833 per month).

Compounding Interest Graph

The 25-year-old ends up contributing less money over time – $200,000 versus $250,000 – but ends up with a higher balance: $798,735 versus $566,317. In other words, the 25-year-old contributes $50,000 less but ends up with $232,000 more than the 40-year-old who waited to save. As this example shows, younger investors may benefit from saving as much as possible as soon as possible.

If your retirement date is a bit closer, you can still take advantage of compounding interest. However, you may need to increase your monthly contributions to meet your retirement savings goals. Luckily, the IRS allows people who are aged 50 years or older to contribute an additional “catch-up” amount to their retirement plans each year.

As you determine your contribution amount, please note the IRS places limits on how much employees can contribute to a retirement plan each year. To contribute a certain amount, such as $100 per paycheck, you can use the calculating tool to convert a dollar amount to a percentage.

Of course, remember that investment returns are not guaranteed and will fluctuate — in some years you may have gains, and in other years you may have losses. But over time, any investment with a net gain will benefit from compounding.

How to Change Your Contribution

While your contribution to the 403(b) Base account is fixed based on your income, you can adjust your contributions to the 403(b) Supplemental Retirement Program and/or the 457(b) Deferred Compensation Plan at any time. To do this, login to the EBS Portal with your NetID and password. Select My Benefits from the top navigation, then click on the Benefit/Retirement Enrollment and Changes tile. Select Enroll/Change my Retirement/Health Savings Account Options from the dropdown menu and click Next. On the Savings Plan screen, you’ll be able to edit your contributions to the 403(b) Supplemental and/or 457(b) Deferred Compensation accounts. Make sure you click through all the screens and hit Save to finalize the change to your contributions.

Questions? We encourage you to reach out to Fidelity (800-642-7131) or TIAA (800-732-8353) for your retirement planning questions. Visit the HR website for additional information on the retirement plans offered by MSU.

1 Please note, that the example above is a hypothetical illustration only and is not intended to represent the past or future performance of any investment. The example assumes contributions are made monthly at a 6% annual effective rate, compounded monthly, and no withdrawals. Actual performance will vary with market conditions. Investing involves risk. There is no assurance that the goals will be met or that the solution or strategy will be successful. This example was developed in partnership with TIAA.

2 Certain types of employees are excluded from participating in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more details.

Piggy Bank

Retirement Planning: 2025 IRS Retirement Plan Contribution Limits 

Published on by Megan MacGregor1 Comment

Whether your retirement is on the horizon or a faraway goal, it’s important that you continue to monitor and adjust how much you’re saving if you want to have a comfortable retirement. The IRS places limits on how much employees can contribute to a retirement plan each year and recently announced the retirement plan limits for 2025: 

  • The annual employee contribution amount increased from $23,000 to $23,500 for 403(b) and 457(b) plans. 
  • The age 50 catch-up contribution amount remains the same at $7,500 for 403(b) and 457(b) plans. 

If you want to save as much as possible for your retirement, a tool in the EBS Portal called the Max Savings Contributions Calculator is available to assist you. This tool automatically displays the remaining amount of retirement contributions you have available before reaching one of the limits, and the equivalent percentage of your pay to help you spread that out for the year. 

To access this tool: 

  1. Login to the EBS Portal with your MSU NetID and password. 
  1. Click the My Benefits tab at the top. 
  1. Click the Benefit/Retirement tile. 
  1. Select Enroll/Change my Retirement/Health Savings Account Options in the drop-down menu and then click Next in the bottom right. 
  1. Navigate in the bar graph to the Savings Plans screen by clicking Next in the bottom right. 
  1. The Max Savings Contributions Calculator screen will display. This display will automatically show the remaining amount of retirement contributions you have available (if any) before reaching the IRS limit. 
  1. You can adjust the percentage of your contributions to any retirement plans you participate in by clicking on the pencil icon, and then choosing Select to make the change. 
  1. If you want to enroll in a new plan, begin by clicking on the paper icon next to the plan and vendor of your choosing, and then enter the percentage of your new contribution and choose Select to enroll. 
  1. Make sure to click on Save in the bottom right to complete and save any changes/enrollments. 

If you are an academic year faculty or academic staff employee, or a Voluntary 403(b) Base participant aged 50 and over, contact the HR Solutions Center at 517-353-4434 or SolutionsCenter@hr.msu.edu for further assistance in calculating your maximum contribution percentage. 

Learn More About MSU’s Retirement Plans 

The following articles contain more detailed information about MSU’s retirement plan options and preparing for retirement: 

The  HR website  also contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available. 

a person putting money in a pink piggy bank.

Your Top Questions About MSU’s Optional Retirement Plans

Published on by Megan MacGregorLeave a comment

Whether this is your first job out of school, or you’ve been working for 40+ years, it’s important to make sure you’re taking advantage of every opportunity to prepare for your eventual retirement. Most benefit-eligible employees* are aware of and enrolled in the 403(b) Base Retirement Program (BRP) offered by MSU, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10% – an immediate two for one match of your investment – for a total contribution of 15%. While this provides a great foundation for your retirement savings, most employees will eventually want to consider additional savings options for their retirement.

In addition to the BRP, eligible employees also have the option of enrolling in two additional retirement programs: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. Enrollment in one or both optional programs can help employees meet their retirement savings goals so they can more easily transition to retirement.

We’ve compiled a list of the top questions we receive as employees think about enrolling in these optional plans:

  • Q: Is there a minimum amount that must be contributed to one of the optional plans? What about a maximum amount?

    A: Employees may elect any percentage contribution, as all contributions are based on a percentage of eligible pay. For example, 1.50% would be an acceptable contribution election. Employees wishing to contribute a certain amount, such as $100 per paycheck, can use the calculating tool for converting a dollar amount to a percentage.

    Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year. Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at maximizing your retirement plan contributions.
  • Q: Does contributing a small amount – such as $25 a month – make a difference in the long run?

    A: We encourage employees to work with their financial advisors or retirement vendors for assistance in deciding how much more to contribute. You may be surprised how a small contribution over a long period of time can impact your retirement account balance and may want to take advantage of compounding earnings as you save for retirement.
  • Q: What are the main differences between the 403(b) Supplemental and the 457(b) Deferred Compensation Plan?

    A: Generally, the differences are when an individual can access the funds and the loan provisions. Also, the 403(b) Supplemental contributions must be added with the Voluntary 403(b) Base contributions when calculating the IRS maximum contributions, whereas the 457(b) Deferred Compensation Plan has a separate IRS maximum limit. A more detailed comparison of the two different optional accounts can be found in the Retirement Plans Comparison chart.
  • Q: Can I enroll in an optional retirement plan account at any time?

    A: Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors. Depending on payroll schedules and deadlines there may be a delay when the contributions start/stop. More detailed information can be found on the HR website at Enroll or Make Changes to Retirement Plans.

For more information about available retirement plans from MSU, please review the retirement resources on the HR website and the MSU Retirement Plans Enrollment Guide. Find instructions to enroll in these optional retirement plans at any time throughout the year. Please contact the HR Solutions Center with any questions at SolutionsCenter@hr.msu.edu or 517-353-4434.

*Note: Certain types of employees are excluded from participating in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail. 

Pen and notebook in use

Don’t Wait to Create a Retirement Savings Plan

Published on by Megan MacGregorLeave a comment

We are committed to helping our employees prepare for a successful retirement by offering several retirement savings plan options, along with tools and resources to help you reach your goals.

Most benefit-eligible employees2 are enrolled in the 403(b) Base Retirement Program, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10%. That’s an immediate two-for-one match of your investment for a total contribution of 15%. While this provides a great foundation, you may want to consider additional savings options. MSU also offers two additional savings accounts: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. For more information about these two accounts, read Your Top Questions about MSU’s Optional Retirement Plan Options.

How to Make a Retirement Savings Plan

It’s normal to have many questions when you start to plan for your retirement:

  • How early should I start planning?
  • How much do I need to save to retire comfortably?
  • Which plan(s) should I contribute to?
  • What can I do to maximize my savings?
  • Are my retirement goals attainable?

The answers will depend on your financial situation and retirement goals. We strongly encourage all MSU employees to make an appointment with their retirement vendor – Fidelity or TIAA – to discuss their options and develop a personalized savings plan. Fidelity and TIAA are financial professionals who can provide helpful strategies, tips, and actionable steps that can help you take charge of your finances.

Additionally, both Fidelity and TIAA have numerous resources – including articles, webinars, interactive tools, and more – to help you learn about saving for retirement and other financial goals.

Don’t Wait to Save: The Power of Compounding Interest

For younger MSU employees, creating a comprehensive retirement savings plan may not be a top priority. Between student loans, rent, childcare, and more, it can be difficult to set aside money for a day 30 to 40 years in the future. But the young have a huge advantage when it comes to saving money for retirement: more time. This additional time allows them to potentially benefit the most from compounding interest, which may lead to greater savings down the road.

Compounding interest basically means allowing an investment to earn money while continually reinvesting those earnings over time. The more time you have, the smaller your original investment may need to be. In the hypothetical example below, a 25-year-old starts saving $5,000 annually ($416 per month), and a 40-year-old starts saving twice as much but waits until age 40 ($833 per month). 

Compounding Interest Graph

The 25-year-old ends up contributing less money over time – $200,000 versus $250,000 – but ends up with a higher balance: $798,735 versus $566,317. In other words, the 25-year-old contributes $50,000 less but ends up with $232,000 more than the 40-year-old who waited to save. As this example shows, younger investors may benefit from saving as much as possible as soon as possible.

If your retirement date is a bit closer, you can still take advantage of compounding interest. However, you may need to increase your monthly contributions to meet your retirement savings goals. Luckily, the IRS allows people who are aged 50 years or older to contribute an additional “catch-up” amount to their retirement plans each year.

As you determine your contribution amount, please note the IRS places limits on how much employees can contribute to a retirement plan each year. To contribute a certain amount, such as $100 per paycheck, you can use the calculating tool for converting a dollar amount to a percentage.

Of course, remember that investment returns are not guaranteed and will fluctuate — in some years you may have gains, and in other years you may have losses. But over time, any investment that has a net gain will have benefited from compounding.

How to Change Your Contribution

While your contribution to the 403(b) Base account is fixed based on your income, you can adjust your contributions to the 403(b) Supplemental Retirement Program and/or the 457(b) Deferred Compensation Plan at any time. To do this, login to the EBS Portal with your NetID and password. Select My Benefits from the top navigation, then click on the Benefit/Retirement Enrollment and Changes tile. Select Enroll/Change my Retirement/Health Savings Account Options from the dropdown menu and click Next. On the Savings Plan screen, you’ll be able to edit your contributions to the 403(b) Supplemental and/or 457(b) Deferred Compensation accounts. Make sure you click through all the screens and hit Save to finalize the change to your contributions.

Questions? We encourage you to reach out to Fidelity (800-642-7131) or TIAA (800-732-8353) for your retirement planning questions. Visit the HR website for additional information on the retirement plans offered by MSU.

1 Please note, that the example above is a hypothetical illustration only and is not intended to represent the past or future performance of any investment. The example assumes contributions are made monthly at a 6% annual effective rate, compounded monthly, and no withdrawals. Actual performance will vary with market conditions. Investing involves risk. There is no assurance that the goals will be met or that the solution or strategy will be successful. This example was developed in partnership with TIAA.

2 Certain types of employees are excluded to participate in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail. 

Piggy bank on a stack of books.

Retirement Planning: 2024 IRS Retirement Plan Contribution Limits

Published on by Megan MacGregor2 Comments

Whether your retirement is on the horizon or a faraway goal, it’s important that you continue to monitor and adjust how much you’re saving if you want to have a comfortable retirement. The IRS places limits on how much employees can contribute to a retirement plan each year and recently announced the retirement plan limits for 2024:

  • The annual employee contribution amount increased from $22,500 to $23,000 for 403(b) and 457(b) plans.
  • The age 50 catch-up contribution amount remains the same at $7,500 for 403(b) and 457(b) plans.

If you want to save as much as you can for your retirement, there is a tool in the EBS Portal called the Max Savings Contributions Calculator available to assist you. This tool automatically displays the remaining amount of retirement contributions you have available before reaching one of the limits, and the equivalent percentage of your pay to help you spread that out for the year.

To access this tool:

  1. Login to the EBS Portal with your MSU NetID and password.
  2. Click the My Benefits tab at the top.
  3. Click the Benefit/Retirement tile.
  4. Select Enroll/Change my Retirement/Health Savings Account Options in the drop-down menu and then click Next in the bottom right.
  5. Navigate in the bar graph to the Savings Plans screen by clicking Next in the bottom right.
  6. The Max Savings Contributions Calculator screen will display. This display will automatically show the remaining amount of retirement contributions you have available (if any) before reaching the IRS limit.
  7. You can adjust the percentage of your contributions to any retirement plans you participate in by clicking on the pencil icon, and then choose Select to make the change.
  8. If you want to enroll in a new plan, begin by clicking on the paper icon next to the plan and vendor of your choosing, and then enter the percentage of your new contribution and choose Select to enroll.
  9. Make sure to click on Save in the bottom right to complete and save any changes/enrollments.

If you are an academic year faculty or academic staff employee, or a Voluntary 403(b) Base participant aged 50 and over, contact the HR Solutions Center at 517-353-4434 or SolutionsCenter@hr.msu.edu for further assistance in calculating your maximum contribution percentage.

Learn More About MSU’s Retirement Plans

The following articles contain more detailed information about MSU’s retirement plan options and preparing for retirement:

The HR website also contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available.

Your Top Questions About MSU’s Optional Retirement Plans

Published on by Megan MacGregorLeave a comment

Whether this is your first job out of school, or you’ve been working for 40+ years, it’s important to make sure you’re taking advantage of every opportunity to prepare for your eventual retirement. Most benefit-eligible employees* are aware of and enrolled in the 403(b) Base Retirement Program (BRP) offered by MSU, which consists of a 5% employee contribution of your eligible compensation and a generous university matching contribution of 10% – an immediate two for one match of your investment – for a total contribution of 15%. While this provides a great foundation for your retirement savings, most employees will eventually want to consider additional savings options for their retirement.

In addition to the BRP, eligible employees also have the option of enrolling in two additional retirement programs: the 403(b) Supplemental Retirement Program and the 457(b) Deferred Compensation Plan. Enrollment in one or both optional programs can help employees meet their retirement savings goals so they can more easily transition to retirement.

We’ve compiled a list of the top questions we receive as employees think about enrolling in these optional plans:

  • Q: Is there a minimum amount that must be contributed to one of the optional plans? What about a maximum amount?

    A: Employees may elect any percentage contribution, as all contributions are based on a percentage of eligible pay. For example, 1.50% would be an acceptable contribution election. Employees wishing to contribute a certain amount, such as $100 per paycheck, can use the calculating tool for converting a dollar amount to a percentage.

    Maximum contribution amounts are set by the Internal Revenue Service (IRS) each year. Information on current IRS limits, including Age 50 Catch-up contributions, can be reviewed at maximizing your retirement plan contributions.
  • Q: Does contributing a small amount – such as $25 a month – make a difference in the long run?

    A: We encourage employees to work with their financial advisors or retirement vendors for assistance in deciding how much more to contribute. You may be surprised how a small contribution over a long period of time can impact your retirement account balance and may want to take advantage of compounding earnings as you save for retirement.
  • Q: What are the main differences between the 403(b) Supplemental and the 457(b) Deferred Compensation Plan?

    A: Generally, the differences are when an individual can access the funds and the loan provisions. Also, the 403(b) Supplemental contributions must be added with the Voluntary 403(b) Base contributions when calculating the IRS maximum contributions, whereas the 457(b) Deferred Compensation Plan has a separate IRS maximum limit. A more detailed comparison of the two different optional accounts can be found in the Retirement Plans Comparison chart.
  • Q: Can I enroll in an optional retirement plan account at any time?

    A: Yes, retirement plan elections can be made at any time. This includes beginning or canceling enrollment, increasing or decreasing contribution percentages, and changing vendors. Depending on payroll schedules and deadlines there may be a delay when the contributions start/stop. More detailed information can be found on the HR website at Enroll or Make Changes to Retirement Plans.

For more information about available retirement plans from MSU, please review the retirement resources on the HR website and the MSU Retirement Plans Enrollment Guide. Find instructions to enroll in these optional retirement plans at any time throughout the year. Please contact the HR Solutions Center with any questions at SolutionsCenter@hr.msu.edu or 517-353-4434.

*Note: Certain types of employees are excluded to participate in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail.