Human Resources

The following employees are eligible to participate in the plan immediately upon hire:

10% Level: 50% or more FTE Academic, Exempt Staff, or Eligible Non-Exempt Staff (PAO or PAU) employees hire or rehired in an appointed position after June 30, 1999.

11.25% Level:

• 50% or more FTE Exempt Staff or Eligible Non-Exempt Staff (PAO or PAU) employees hired into a grade 15 and below appointed position before July 1, 1999; or
• Academic employees hired in an appointed position before July 1, 1999, who are less than a 100% FTE, but at least a 50% FTE for 12 pays, 60% FTE for 10 pays, or 65% FTE for nine pays.

12% Level: 100% FTE Academic or Exempt Staff employees hired into a grade 16 and above appointed position on or after January 1, 1989, but no later than June 30, 1999.

15% Level: 100% FTE Academic or Exempt Staff employees hired into a grade 16 and above appointed position before January 1, 1989.

Eligible employees are automatically enrolled in the appropriate plan, but must setup their plan account, choose investments, and designate beneficiaries by following these step-by-step enrollment instructions. For assistance with any of these processes, contact Fidelity at 877-343-0860.

Indiana University makes all contributions to the plan. Employees are not permitted to make additional contributions.

10% Level: An amount equal to 10% of budgeted base salary¹ for each regular pay period.

11.25% Level: An amount equal to 11.25% of total salary² for each regular pay period.

12% Level: An amount equal to 12% of budgeted base salary¹ for each regular pay period.

15% Level: An amount equal to 11% of the first $7,800 of budgeted base salary¹, plus 15% of budgeted base salary thereafter.

¹ Budgeted base salary does not include any supplemental pay received.

² Total salary includes budgeted base salary and supplemental pay.

The information below is a summary of IRS contribution limits that apply to this plan. It is your responsibility to ensure you do not exceed these maximums between all of your retirement saving accounts. Visit the IRS Limits page for further details.

Total Contribution Limit – IRC 415(c)
The calendar-year limit on total contributions is the lesser of 100 percent of your compensation or $69,000 for 2024.

This total contribution limit applies to the sum of employer contributions to the IU Base Retirement Plan, the IRC 403(b) plan portion of the 18/20 Retirement Plan on behalf of a participant, and employee contributions to the Tax Deferred Account (TDA), except for the extra $7,500 that employees age 50 or older may contribute.

Note: The total contribution limit also applies to any contributions you make to 403(b) plan sponsored by employer in same controlled group as IU and, if you own 50% or more of an employer (such as a faculty practice plan), that employer's defined contribution 403(b), 401(a), 401(k) plan or SEP.

Annual Compensation Limit – IRC 401(a)(17)
The IRS limits the maximum annual compensation on which qualified retirement benefits can be calculated. The maximum annual compensation is $345,000 of plan-eligible earnings in 2024.

Participants enrolled in the plan on or after September 1, 2010 are subject to a three-year cliff-vesting requirement. This means that an employee is fully vested in the plan after three years of IU employment.

All account balances and future contributions and earnings of participants in the plan prior to September 1, 2010 are fully vested. 

For more information visit the IU Retirement Plan vesting information page.

This is a “participant directed plan” meaning you are responsible for directing the investment of your plan account. If you do not select investments, your funds will be invested in the plan’s default investment option – and age-appropriate Vanguard Institutional Target Retirement Date Fund.

• Review the Investment Options available under the plans.
• Learn how to change your investments at any time.

Hardship distributions and loans are not allowed to be made to participants from this plan. For information on Required Minimum Distributions, see ‘Options When You Leave IU’ below.

When Your Employment Ends
All plan contributions stop when your employment with IU ends. Upon termination of employment, you may:

• Leave accumulations in the plan account and continue to manage investments;
• Withdraw all or a portion of vested plan account accumulations (subject to income taxes and/or penalty taxes); or
• Roll over all or a portion of vested plan account accumulations to an eligible retirement plan (e.g., an IRA).

After terminating employment with the university, most transactions related to your plan account are handled directly with the applicable investment company. For more information, review the Benefits After Separation Guide.

Required Minimum Distributions (RMD) at Age 72
When you turn age 72 (or 73 if your 72nd birthday is after December 31, 2022), the IRS requires that you begin taking distributions from certain retirement accounts, called a “required minimum distribution” or RMD. You can take this first withdrawal either in the year you turn 72 or wait until April 1 of the next year. If you're still working, you can defer RMDs until after you separate/retire from IU without penalties. For example:

• If you turn 72 in 2022, your first withdrawal must be taken by April 1, 2023. But you’ll also have to take a second withdrawal by December 31, 2023.
• If you turn 72 in 2023, your first withdrawal is due by April 1, 2025, since you turn 73 in 2024.

For questions about RMDs, contact Fidelity or the account vendor directly.