Human Resources reminds employees of voluntary contribution limits, tax saver’s credit, more

As a reminder, retirement plan contribution limits for 2023 have been announced by the IRS. Contribution limits are set annually and communicated each fall ahead of the upcoming calendar year and again as a reminder in the new year.

The 2023 limits will offer employees the opportunity to contribute even more toward their retirement. For 2023, the 403(b) and 457(b) Voluntary plan limits increase to $22,500 per plan, up from $20,500 in 2022.

Employees who are turning at least 50 years old during the 2023 calendar year may make additional catch-up contributions. The maximum catch-up contribution per voluntary plan increases in 2023 to $7,500 from $6,500 in 2022.

With the start of a new year, individuals participating in the Purdue Matching Retirement and Savings Plan retirement program are encouraged to log in and review their contribution election to the 403(b) Voluntary plan to ensure they are contributing 4% or greater to receive the maximum 4% matching university contribution to the 403(b) Base plan.

To update voluntary contributions, investment elections or beneficiary information or to view account balance information, log in to Fidelity NetBenefits at any time during the year.

Fidelity retirement planners are available at no cost to assist with helping faculty and staff understand their retirement programs and options. To make an appointment, schedule online or call 800-642-7131.

Learn more about the benefits of a consultation with a Fidelity retirement planner by watching the video “Retirement Planning – How You Benefit From a Fidelity Consultation.”

Tax Saver’s Credit

As tax season approaches, it’s important to remember that employees with certain income levels may also be eligible to receive an additional credit for their retirement contributions to a voluntary savings plan.

The tax incentive, known as the Saver’s Credit, gives credit for the first $2,000 ($4,000 if married filing jointly) voluntarily contributed to workplace retirement programs. Get more information about the Saver’s Credit here.

Fidelity – Purdue’s official retirement partner

In 2011, Fidelity became Purdue’s main retirement plan recordkeeper and official provider of education, guidance and assistance related to retirement plan investments and decisions. Although other organizations may advertise retirement services and call or email Purdue employees, the university does not have business relationships with, nor does it endorse, other financial advisors.

Employees who receive unsolicited communications from other organizations are advised to clearly inform the callers that they wish to be removed from the call and/or email lists.

For employees with retirement accounts established prior to 2011, resources continue to be available from the account vendor. It is important to note that separate recordkeeping and investment fees apply to funds held on recordkeeping platforms outside of Fidelity.

Assistance remains available through Fidelity to all individuals considering consolidating accounts.

Questions

Questions can be directed to Fidelity at 800-343-0860.