Purdue offers a variety of retirement plans, depending upon the type of position you hold. Refer to this information to help you prepare for many of the financial aspects of retirement. Learn more about your Purdue University Retirement Program at www.purdue.edu/hr/Benefits/retirees. You can enroll online at any time.

Through automatic payroll deduction, you can contribute between 1% and 85% of your eligible pay on a pretax or Roth basis, up to the annual IRS dollar limits. The total maximum compensation that can be used for contributions is $350,000.

Your 403(b) Voluntary Retirement Savings plan offers you a Roth contribution option.

A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement – as long as the distribution is a qualified one. A qualified distribution, in this case, is one that is taken at least five tax years after your first Roth 403(b) contribution and after you have attained age 59½.

If you have reached age 50 or will reach 50 during the calendar year January 1 – December 31 and are making the maximum plan or IRS contribution, you may make an additional catch-up contribution each pay period. The maximum annual catch-up contribution is $7,500. Going forward, catch-up contribution limits will be subject to cost-of-living adjustments (COLAs) in $500 increments.

The IRS contribution limit for 2025 is $23,500.

Once you begin participating in any one of the Purdue University Retirement Plans, you are 100% vested in your own contributions and any earnings on them.

Vesting of any employer contributions is based on your specific plan. For details, please visit https://www.purdue.edu/hr/Benefits/retirees.

To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The many investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan’s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online.

You can choose your investment allocations across all tiers that are offered in your plan, and you can reallocate your investment allocations as often as you would like. If you have questions regarding your investment allocations, you may want to consider scheduling a confidential consultation. You can do so by going online, or by calling 800-642-7131.

We encourage you to take an active role in Purdue University 403(b) Defined Contribution Voluntary Retirement Savings Plan and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the Vanguard Target Retirement Fund with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65, at the direction of your Plan Sponsor.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

For your voluntary savings, your enrollment becomes effective once you elect a deferral percentage into the voluntary retirement savings plans, which initiates deduction of your contributions from your pay. It may take one to two pay periods for your contribution to begin.

Purdue offers a variety of retirement plans, depending upon the type of position you hold. Review your complete plan details at https://www.purdue.edu/hr/Benefits/retirees for your specific situation.

Although your Plan account is intended for the future, you may borrow from your account for several reasons.

Generally, the Plan allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $1,000 and a loan must not exceed $50,000. You then pay the money back into your account, plus interest, through automatic payments from your bank account. You may have only one loan outstanding at a time.

Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. The cost to initiate a loan is $50, and there is a quarterly maintenance fee of $6.25. The initiation and maintenance fees will be deducted directly from your individual Plan account. If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly a 10% early withdrawal penalty. If you default on a loan from the Plan, you will not be able to request a new loan in the future. Be sure you understand the Plan guidelines and impact of taking a loan before you initiate a loan from your Plan account.

Learn more or model a loan before making a request. Go to www.NetBenefits.com > Quick Links > Loans & Withdrawals or call Fidelity Investments Service Center at 800-343-0860.

Withdrawals from the Plan are generally permitted when you terminate your employment, retire, or reach age 59½.

Distributions are subject to a mandatory 20% federal tax withholding and if applicable, mandatory state taxes unless you are rolling over all or a portion of your account into an individual retirement account (IRA) or another employer’s retirement Plan. The rollover portion is not subject to taxes until a distribution is made from the account. If you are under age 59½, the taxable portion of your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule.

Learn more about and/or request a withdrawal online, or by calling the Fidelity Investments Service Center at 800-343-0860.

Learn more or model a withdrawal before making a request. Go to www.NetBenefits.com > Quick Links > Loans & Withdrawals or call Fidelity Investments Service Center at 800-343-0860.

Fidelity representatives are available to help you. Schedule a 1:1 or register for a group event. Go to www.Fidelity.com/Schedule and search "Purdue University."

Fidelity’s Online Beneficiaries Service, offers a straightforward, convenient process that takes just minutes. To make your elections, click on the “Profile” link, then select “Beneficiaries” and follow the online instructions.