2025 403(b) and 457(b) Announcement for RCC
RCC offers two excellent voluntary programs through which you may elect to contribute a portion of income into supplemental retirement savings accounts: the 403(b) and 457(b) plans. RCC has contracted with Carruth Compliance Consulting (CCC), a Third Party Administrator (TPA), to provide information and support for the 403(b) and 457(b) plans. CCC can be contacted by phone at 877-222-3090.
All part-time and full-time employees are eligible to contribute, except student employees who are exempt from FICA taxation.
You may begin, change or cancel contributions in the 403(b) plan and/or the 457(b) plan at any time, subject to payroll deadlines. (You must provide enrollment documentation prior to beginning salary deferrals.) In addition to traditional pre-tax 403(b) and 457(b) contributions, RCC offers after-tax Roth 403(b) contributions.
Comparing the 403(b) SRA and 457(b) plans at a glance
| PLAN FEATURE | 457(b) | 403(b) |
| In-service disability withdrawal? | No | Yes |
| In-service hardship withdrawal? | Yes | Yes |
| In-service withdrawal at age 59½? | Yes | Yes |
| Subject to minimum distribution at 72? (Once retired or terminated from U-M) | Yes | Yes |
| Subject to IRS early withdrawal penalty? | No | Yes |
| Loans | Yes | Yes |
403(b) Contribution* Limits for 2025
- $23,500.00 applies to employees under age 50 at the end of 2025
- $31,000.00 applies to employees age 50-59 or over 63 by end of 2025
- $34,750.00 applies to employees age 60-63 by end of 2025
- 403(b) Special 15 Years of service catch-up: Up to an additional $3,000**
457(b) Contribution* Limits for 2025
- $23,500.00 applies to employees under age 50 at the end of 2025
- $31,000.00 applies to employees age 50-59 or over 63 by end of 2025
- $34,750.00 applies to employees age 60-63 by end of 2025
- 457(b) Special three-year catch-up: If 2025 is one of the last three years preceding the calendar year of your normal retirement age, you may be eligible* to contribute up to $47,000.00** (twice the basic limit)
*Please contact CCC to verify eligibility and limits available under special catch-ups.
**Note: Contributions to the plans above cannot exceed employees’ total compensation.
The ’Age-Related Catch-up Limits’ above apply for the first time in 2025 as a result of the SECURE 2.0 Act. A new ’Catch-up Contributions Must Be Roth for Highly Compensated Participants’ requirement becomes effective in 2026. Find additional information here about SECURE 2.0 requirements.
Participant Responsibilities
- Participants are responsible for monitoring account activity regularly for accuracy (e.g., deposits of your contributions), updating contact and beneficiary information.
- Contribution limits are specific to you, the taxpayer. If you participate in another organization’s retirement plan in addition to participating in the RCC plan, please note:
- 403(b) Elective Deferral Limits described above apply to your total deferrals to all 403(b), 401(k), SIMPLE and SARSEP plans in which you participate.
- If you control an organization sponsoring a qualified defined contribution plan, all contributions made to that plan on your behalf must be aggregated with all 403(b) elective deferrals and employer contributions at RCC for the 2025 $70,000.00 IRC 415(c) limit, but those age 50+ may defer additional amounts.
- Note: 457(b) contributions do not need to be aggregated with 403(b) contributions for limit consideration.
- If a problem exists or if you have questions, you should contact CCC or your employer as soon as possible.
Approved Vendor List & Contact Information*
Type | Vendor | Phone | Website | Roth Available |
| 403b | American Funds | 800-421-6621 | American Funds | No |
| 403b | Fidelity Investments | 800-343-0860 | Fidelity Investments | Yes |
| 403b | Invesco | 800-959-4246 | Invesco | Yes |
| 403b | TIAA | 800-842-2252 | TIAA | Yes |
| 403b | Corebridge Financial (VALIC) | 800-448-2542 | Corebridge Financial | Yes |
| 403b | VOYA | 888-410-9482 | Voya | Yes |
| 457b | Oregon Savings Growth Plan (OSGP) | 800-365-8494 | Oregon Savings Growth Plan | Yes |
| 457b | Corebridge Financial (VALIC) | 800-448-2542 | Corebridge Financial | Yes |
*Employees working with a financial advisor approved to enroll clients in the identified 403(b) or 457(b) may go through their advisor instead of reaching out to the general vendor contact.
For more information contact Tammy Canady on Teams or by phone at 541-956-7028.