SRA Brochure

SUPPLEMENTAL RETIREMENT ACCOUNT PLANS QUESTIONS & ANSWERS You must first exhaust all loan opportunities before requesting a hardship and provide hardship documentation (eviction, mortgage payment for primary residence, etc.). Contact your vendor for further details. The UM Benefits Office must sign off on all hardships and loans.

12. When am I required to take withdrawals from these plans?

If retired or separated from service, payout must begin by April 1 of the year following the calendar year in which you reach age 70½; however, you’re not required to take payout until retired or separated from University service. A 50 percent federal excise tax may be assessed by the IRS if the required distributions have not begun by the later of the above April 1 date or retirement.

13. What are my options upon separation from employment?

If you are age 55 or older, you can receive your account balance as taxable income, transfer your account to another plan, or elect to defer your distribution to a later date, but no later than April 1 in the calendar year following the attainment of age 70½. Life annuities, lump-sum distributions, rollovers, and payout over time are available.

14. When I withdraw my account, will I pay a withdrawal or deferral sales charge?

Deferred Comp 457(b) With some companies, there may be certain charges when you switch companies or make early withdrawal.

403(b) and/or 401(k) No. 15. Can I use money from my SRA to purchase service credits for the Maryland State Retirement & Pension System?

Yes. 16. Can I roll over my earned unused holiday and vacation time to an SRA when I retire?

Yes, this request requires pre-planning and you cannot exceed the IRS’ limitations for contributions. Be sure to talk with the HR Benefits Specialist at least a month in advance of retiring.