Human Resources

To participate in the plan, an employee must be an Academic, Exempt, or Non-Exempt PAO or PAU Staff member appointed at 50% or more FTE after June 30, 1999.

Eligibility criteria for academic and exempt staff employees appointed prior to June 30, 1999, can be found in the IU Retirement Plan – Plan Document.

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.

For employees hired after June 30, 1999

The university contributes 9% of budgeted base salary¹ with each regular pay period for Academic, Exempt Staff, and Non-Exempt PAO or PAU Staff members appointed at 50% or more FTE.

For employees hired on or before June 30, 1999

The university contributes the following amount with each regular pay period:

• 10.25% of their total salary² for 50% or more FTE Exempt Staff and Non-Exempt PAO or PAU Staff employees hired into a grade 15 and below appointed position before July 1, 1999; or Academic employees hired into an appointed position before July 1, 1999, who are less than 100% FTE, but at least 50% FTE for 12 pays, 60% FTE for 10 pays, or 65% FTE for nine pays.
• 11% of their budgeted base salary¹ for 100% FTE Academic and 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.
• 10% of the first $7,800 of budgeted base salary, plus 14% of their budgeted base salary¹ thereafter for 100% FTE Academic and Exempt Staff employees hired into a grade 16 and above appointed position before January 1, 1989.

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

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

²Total 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 $70,000 for 2025.

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 IU TDA Plan, 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 $350,000 of plan-eligible earnings in 2025.

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.