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Voluntary Retirement Savings Plans

Today, more than ever, it's important to have a plan in place to be able to retire when you'd like and do the things you've dreamed of doing. Purdue offers two types of tax-favored Voluntary Savings Plans that can be an important part of your planning for retirement.

What are the Voluntary Savings Plans?

Voluntary Savings plans are tax-favored retirement plans that allow employees of non-profit organizations, such as Purdue University, to save for retirement and supplement income from other pension sources. These plans offer tax advantages, either as a pre-tax investment that allows your contributions and earnings to grow over time while deferring the payment of taxes until you withdraw the funds, or as an after-tax ROTH contribution that allows your already taxed contributions and earnings to grow over time with no tax liabilities upon withdrawal.

These plans offer a way to increase your retirement income through regular, planned investing. You manage your account by determining how much to save each pay period and your contributions are deducted from your pay and placed in the investment options of your choice. Purdue offers two voluntary plans for your retirement savings--the 403(b) Voluntary Retirement Savings Plan and the 457(b) Deferred Compensation Plan. You can choose to contribute to one of them or maximize your savings potential by using both plans.

403(b) Voluntary Retirement Savings Plan

  • Eligible to participate from date of hire
  • Immediate vesting
  • Loan provision available
  • Pre-tax contributions (taxes paid at time of withdrawal)
  • ROTH post-tax contributions option available
  • IRS maximum of $17,000 for 2012 and $17,500 for 2013, if under age 50
  • Age catch-up provision allowed: if age 50 or over in current calendar year, may defer an additional $5,500
  • Withdrawals allowed at age 59½ or at age 55, if separated from Purdue. Also allowed for severe financial hardship.

457(b) Voluntary Retirement Savings Plan

  • Eligible to participate from date of hire
  • Immediate vesting
  • Pre-tax contributions (taxes paid at time of withdrawal)
  • IRS maximum of $17,000 for 2012 and $17,500 for 2013, if under age 50
  • Age catch-up provision allowed: if age 50 or over in current calendar year, may defer an additional $5,500
  • Withdrawals allowed upon separation from Purdue

How to Sign Up for a Voluntary Retirement Savings Plan

To enroll in one of the Voluntary Savings plans, go to Fidelity's Purdue-dedicated site. Click on "Enroll Now" on the right hand side of the page. Then select the plan you wish to enroll in by clicking the "Enroll Now" button below the plan. Follow the instructions to complete your enrollment. You will indicate the amount you wish to contribute and the funds you would like to invest in. You will also need to designate your beneficiary.

Need More Help?

  • Contact Purdue Benefits at 765-494-1686.
  • To make changes to an existing Fidelity account (address, beneficiary, deduction amount, investment selections) or get help setting up a new account, call 800-343-0860 or go online to Fidelity's Purdue-dedicated website.
  • To meet one-on-one with a retirement counselor on campus to review investments and/or discuss retirement income planning, go online to www.fidelity.com/atwork/reservations or call 800-544-6868 to make an appointment.