Tag: retirement

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. 

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.

A woman putting money into a 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 to participate in the 403(b) Retirement Plan. Please see the 403(b) Base Retirement Program Eligibility Chart for more detail. 

America Saves Week 2023

Published on by MSU Human ResourcesLeave a comment

This week is America Saves Week, an annual event that encourages you to learn and plan for increased savings, lower debt, investing and preparing for retirement. This year’s focus is on financial confidence. America Saves Week defines financial confidence as, “the intersection of building a savings habit, knowing what resources you have available to support your financial stability, and taking advantage of those resources as needed.” 

You can do all this using resources provided to employees by the university and our benefits partners. Both of MSU’s retirement partners, Fidelity and TIAA, offer tips and tricks, courses for financial literacy, and other resources. Through America Saves Week, you also have access to planning tools for managing financial emergencies.

Fidelity Resources

Fidelity provides many resources to MSU employees that can help you learn how to save better and prioritize your financial confidence. You can access your Fidelity account here to get started. Interested in learning the specifics about Fidelity’s rainy day investment and savings plans? Visit their Netbenefits site. Other tools and calculators provided by Fidelity to their MSU members can be found here.

TIAA Resources

If you feel dissatisfied about your current financial situation, TIAA wants to remind you that you are not alone. Read the 2023 TIAA Personal Finance Index and learn that it’s not just you. Some ways to start building financial resiliency with TIAA include contributing to your retirement savings, paying down debt, and growing an emergency fund. According to a survey conducted by TIAA, having more in retirement savings is a top contributor to financial resiliency. Visit the EBS portal to learn more about your contribution options.

Schedule a Virtual Consultation with Fidelity or TIAA

Both Fidelity and TIAA offer virtual appointments with financial consultants. Be sure to set up an appointment to get your questions answered for no additional cost. Set up your Fidelity consulting appointment here or set up your TIAA consulting appointment here.

For general questions about retirement, contact the HR Solutions Center at SolutionsCenter@hr.msu.edu or (517) 353-4434 or visit the HR website. For questions about your specific financial plans, contact your vendor.

Retirement Planning: 2023 IRS Retirement Plan Contribution Limits

Published on by Megan MacGregorLeave a comment

Whether you’ve just started working at MSU or have been here for 30+ years, it is 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. The IRS recently announced the retirement plan limits for 2023:

  • The annual employee contribution amount increased from $20,500 to $22,500 for 403(b) and 457(b) plans.
  • The age 50 catch-up contribution amount increased from $6,500 to $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 HR website contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available.

Quote from President Stanley: In addition to the great work you do every day, I am grateful for your dedication and flexibility over the past couple of challenging years.

Congratulations to Service and Retirement Recognition Program Awardees!

Published on by Megan MacGregor7 Comments

The MSU Retirement and Service Recognition Award recognizes support staff employees celebrating a 15, 20, 25, 30, 35, 40, 45, or 50th work anniversary or a retirement falling between July 1, 2021, and December 31, 2021. This shortened date range is to support a transition from recognizing employees based on the fiscal year to the calendar year. Next year, we will recognize employee years of service between January 1 and December 31, 2022. This year, we recognize over 450 employees celebrating long-term work anniversaries and retirements.

While we are not able to hold an in-person celebration this year, we are no less thankful for our employees’ dedicated service to MSU. We are incredibly disappointed that we cannot celebrate our employees at an in-person event for their talent, loyalty, and contributions to MSU. Our university’s development and growth have been, in large part, due to the contributions made by staff members who have chosen to remain in the service of the university.

MSU President Samuel L. Stanley Jr., M.D.

President Samuel L. Stanley Jr., M.D. acknowledged awardees and expressed his gratitude:

“Service and Retirement Award recipients, congratulations on this milestone in your career or retirement from MSU. In addition to the great work you do every day, I am grateful for your dedication and flexibility over the past couple of challenging years. Together, we have maintained the university’s momentum across our key missions of education, research and outreach — a great accomplishment. I am proud to be your colleague. Thank you for all you do for MSU.”

For a full list of employees celebrating a milestone or retirement, please review the program here.

Thank you to these employees for their years of dedicated service to MSU! If you recognize any names from the program, we encourage you to reach out to these individuals and offer your congratulations.

Answers to Your Top Questions on Preparing for Retirement

Published on by Megan MacGregorLeave a comment

Updated April 2023

Have you worked at MSU for at least 25 years in a benefit-eligible position? Or are you at least 62 years old and worked at MSU for at least 15 years in a benefit-eligible position? If you answered yes to either of these questions, you may be thinking about retiring from MSU someday (or even soon).

To help you prepare for retirement, we’ve compiled a list of the top questions we receive as employees think about transitioning to retirement:

Q1: What will be the retiree health care plan?

A1: This depends on whether you, your spouse/other eligible individual (OEI) or any covered dependents are eligible to enroll in Medicare when you retire. Review the Effect of Retirement on Benefits for details about your situation and the applicable year Open Enrollment Guide for Retirees for health plan information.

Q2: How much will retiree health care cost?

A2: Most retirees are eligible to receive the full university contribution level towards retiree health and dental benefits. To determine your level of university contribution, please review the Retiree Benefits Policy to understand your “Retirement Calculation Date” and your level of “FTE Service Months” (both can be viewed in your Personal Profile tile in the EBS Portal), and how they will affect the amounts that you pay in retirement. Then check the appropriate health care Monthly Plan Premiums chart in the applicable year Open Enrollment Guide for Retirees to determine the cost.

Q3: Am I eligible to cover my spouse/OEI or dependents on my retiree health care plan?

A3: Your “Retirement Calculation Date” (which can be viewed in your Personal Profile tile in the EBS Portal) will determine the university’s contribution for your spouse/OEI and dependents toward retiree health and dental coverage based on university policy. To see which contribution you will qualify for, please review the Retiree Benefits Policy. Even if you’re not eligible to receive a university contribution toward retiree health care for your spouse/OEI or other dependents, you can still enroll them in the university’s group retiree health care plan by paying the full premium cost.

Q4: How is retiree health care different from my current coverage?

A4: Please review the Health Plan Coverage Summary in the applicable year’s Open Enrollment Guide for active employees (faculty or support staff) and retirees to compare the benefits offered.

Q5: What does retiree health care cover?

A5: Please review the Retiree Open Enrollment Guide to view the Health Plan Coverage Summary for benefits offered.

Q6: Does the retiree health care plan include prescription drug coverage?

A6: Yes. Your retiree health care plan and prescription drug coverage is bundled together in one plan. To learn more about the prescription drug coverage, please review the Summary of Health and Prescription Plan Provisions in the Retiree Open Enrollment Guide.

Q7: Is Medicare necessary?

A7: Yes. If you, your spouse/OEI, or any other covered dependent are eligible for Medicare by being age 65 or older, or due to disability (SSDI), the eligible individual must enroll in Medicare Parts A and B (please do NOT enroll in Part D). Please review this Medicare and Social Security Information for more details about enrolling. Once you’re enrolled, you will need to send MSU Human Resources your MBI number from your Medicare card to enroll in MSU’s retiree health care plan.

Q8: Which parts of Medicare do I need?

A8: You must enroll in Medicare Parts A and B (please do NOT enroll in Part D). Please review this Medicare and Social Security Information for more details about enrolling. Once you’re enrolled, you will need to send MSU Human Resources your MBI number from your Medicare card to enroll in MSU’s retiree health care plan.

Q9: When should I sign up for Medicare?

A9: You should enroll in Medicare Parts A & B at least 2-3 months in advance of the effective date, as it will take time for Medicare to process your application and send you your Medicare card (which you will need in order to send MSU Human Resources your MBI number to enroll in the MSU retiree health care plan). If you are eligible for a Special Enrollment Period with Medicare, contact the HR Solutions Center at SolutionsCenter@hr.msu.edu or 517-353-4434 to complete the required form.

Q10: How early do I have to request retirement from MSU?

A10: We suggest you submit your MSU Retirement Form at least 90 days prior to your planned retirement date so we can ensure your enrollment in Medicare and/or the MSU retiree health care plan is completed smoothly and timely. You can submit your completed form up to 120 days in advance of your planned last day of work (for support staff positions) and up to 365 days in advance of your planned retirement date (for faculty, academic staff and executive management positions). You will submit your Retirement Form in the EBS Portal. Instructions to complete and submit the form are available.

Q11: How do you request retirement?

A11: You will submit the MSU Retirement Form via the EBS Portal. Instructions to complete and submit the form are available for your assistance.

Q12: As a support staff employee, what are my options regarding my unused vacation, personal and compensatory time?

A12: There are 3 options:

  1. Receive payment after your retirement date.
  2. Use all your time before your retirement date. After you indicate your last day worked on the Retirement Form, Human Resources will review your form and your available unused vacation, personal and compensatory time to determine your official retirement date.
  3. Combination of the options listed above: On the Retirement Form, please fill in the Notes section with the number of hours and type of hours (vacation, personal, and/or compensatory time) that you would like to use after your last day worked.

For more information on preparing to retire from MSU, please review the retirement resources on the HR website. These include a Roadmap to Retirement webinar, the effect of retirement on your benefits, information about Medicare and Social Security, a retirement checklist and much more.

Retirement Planning: 2022 IRS Retirement Plan Contribution Limits

Published on by Megan MacGregorLeave a comment

Whether you’ve just started working at MSU or have been here for 30+ years, it is 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. The IRS recently announced the retirement plan limits for 2022:

  • The annual employee contribution amount increased to $20,500 for 403(b) and 457(b) plans.
  •  The age 50 catch-up contribution amount continues to be $6,500 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 age 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 HR website contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available. 

graphic of person using calculator and looking at papers on desk.

Make a Plan During America Saves Week

Published on by MSU Human ResourcesLeave a comment

America Saves Week (Feb. 22-26, 2021) is an annual event that encourages you to make a plan to increase your savings and improve your financial situation by utilizing your workplace retirement plan and the tools and resources they provide. Both of MSU’s retirement vendors, Fidelity and TIAA, have resources and tips on saving money, getting out of debt, and planning for retirement with live webinars, courses for financial literacy, and other tools. Be sure to review their resources on preparing for financial emergencies or managing unexpected expenses, which you may find especially useful during this difficult and uncertain time. 

Fidelity Resources

Fidelity is offering online workshops on a variety of topics including creating a budget, paying off debts, managing unexpected events and expenses, taking the first step to investing, preparing for retirement, and more. Fidelity members should consider registering for sessions (see link for details) that may be useful to your family’s current financial needs. If you can’t make the online workshops, check out this on-demand workshop called Taking Control: 3 Ways to Start Feeling Good About Your Finances. Other tools and calculators provided by Fidelity to their members can be found here.

Additionally, find resources on health and financial emergencies, building your financial “immune system” and emergency savings that are available for everyone.

TIAA Resources

TIAA’s Goal Planner webpage offers calculators and resources on how to save for things outside of your retirement plans, such as emergency funds, vacations, a home, and more. Additionally, TIAA has a financial goal planning PDF that allows you to track your money in detail. Use these tools to map your income and expenses, write down your goals, and match them to a time frame to complete them. 

If you’re struggling with debt, TIAA’s debt calculator tool will help you evaluate your current situation and then offer resources and tips to help. Additionally, their Retirement Checkup tool allows you to create a projection of how much income is needed in retirement.

Schedule a Virtual Consultation with Fidelity or TIAA

Both Fidelity and TIAA offer virtual appointments with financial consultants and encourage you to set up an appointment with them to ask any questions you have at no additional cost as part of your MSU retirement plan. Set up an appointment with your  TIAA consultant here or set up an appointment with your Fidelity consultant here. 

For general questions about retirement, visit the HR website or contact the HR Solutions Center at SolutionsCenter@hr.msu.edu or 517-353-4434. For questions about your specific retirement plans, please contact your retirement vendor directly.

jar of money with retirement savings written on the front

Retirement Planning: 2021 IRS Retirement Plan Contribution Limits

Published on by Megan MacGregorLeave a comment

Whether you’ve just started working at MSU or have been here for 30+ years, it is 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. The IRS recently announced the retirement plan limits for 2021:

  • The annual employee contribution amount continues to be $19,500 for 403(b) and 457(b) plans.
  • The age 50 catch-up contribution amount continues to be $6,500 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 age 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 HR website contains a wealth of information about the different types of retirement plans offered, retirement investment vendors, and planning tools available.