Employees contributing to retirement should plan remaining 2017 contributions in advance

A limited number of pay periods remain in 2017 for those wishing to maximize contributions to their voluntary retirement savings plans.

Looking ahead to the remaining pay dates for 2017, it is important to plan contributions to the voluntary 403(b) and 457(b) plans early, as updates generally take one to two pay periods to take effect. With the end-of-year holiday schedule, payroll processes occur even earlier in the months of November and December, and employees should plan accordingly. 

While contribution percentages are updated directly through Fidelity and sent to Purdue, the payroll system deducts retirement contributions from the employee’s pay. Calculations are based on a priority system, ensuring that all necessary benefit deductions are taken from pay first, such as medical and dental premiums. The system also monitors to ensure that the contribution does not exceed the annual IRS limit.

For 2017, the contribution limit per voluntary plan is $18,000. Employees who are at least 50 years old during the calendar year may make additional catch-up contributions up to $6,000 for 2017. The 2018 retirement contribution limits will be announced by the IRS later this fall. Contributions must be calculated as a percentage of pay, instead of a dollar amount.

To assist with planning contributions for the remainder of the year, a schedule of dates is available online to show the date by which to update a voluntary contribution so the update will be reflected on the selected pay date. This is considered a general guideline to assist for planning purposes and is not a guarantee. Some dates may be subject to change based on the Human Capital Management (HCM) transformation project.

Contribution updates can be made online via Fidelity's NetBenefits website or by phone at 800-343-0860. Employees needing assistance to set up a deferral may contact Purdue's local Fidelity office. Call 800-544-6868 to set up an appointment.