UWRP: Preparing to retire
You’ve worked, you’ve saved, and you’ve envisioned your life in the years to come. Now as you near retirement, it’s time to make a plan for ending your service here at UW. The more you plan the smoother your transition will go — you may even realize you can retire sooner than you thought.
For help planning, use the resources on this page. Once you’re ready to retire, you’ll need to submit a UW Retirement Plan (UWRP) retirement application. You can find more information about the plan on the main page for UWRP.
When can I retire?
If you’ve participated in UWRP for at least 10 years without a break in service, you can apply for retirement once you turn 55. You can apply for early retirement starting at age 62 regardless of how many years you’ve participated in UWRP.
Plan as you near retirement
There’s lots to consider as you approach retirement. Among other things, you’ll need to:
- Set a target retirement date
- Attend a UW retirement workshop
- Plan for health insurance during retirement
- Determine the impact taxes have on your income
- Use the retirement planning tools provided by Fidelity Investments
- Estimate your Social Security using their retirement estimator
It’s a good idea to create your own retirement planning calendar. It’ll help you keep track of your plan and avoid missing any steps. Beginning at least one year before your target date for retirement, use the Retirement - UW Retirement Checklist (PDF) to help plan your retirement and make sure you take all the necessary steps.
Submit your application to retire
To be considered for retirement from active service, you must submit a UWRP retirement application to the Benefits office no later than 60 days from the qualifying event date. You can get the application by attending a UW retirement workshop where you’ll also learn about other retirement benefits.
Your retirement income
Your retirement income is based on the amount of money you and the UW contributed to your retirement account as well as the performance of the funds in your account. How much money you receive each month during retirement depends on the withdrawal option you choose.
You can access funds from the UWRP after your final UWRP payroll contribution has been deposited in your account.
You don’t have to start receiving income from UWRP at the same time you retire, though the Internal Revenue Service (IRS) does require that you take the required minimum distribution amount starting the year your reach age 70 1/2 (or the year you retire from UW if you’re older than 70 1/2 when you retire).
As a 403(b) plan, the money you withdraw from your UWRP account is subject to ordinary income tax. The IRS imposes an additional tax on early distributions if you withdraw your money before age 59 ½ while you’re still working. Consult with a tax adviser to understand the tax implications associated with taking any distribution from your UWRP retirement plan account.
Supplemental retirement benefit
Were you a member of UWRP on February 28, 2011? If so, you may be eligible for a calculation of the UW Supplemental Retirement Plan benefit.
Retire due to a health condition
If due to a health condition you can no longer work, UWRP allows you to retire before age 55 by using the UWRP disability retirement provision.