Inside Iowa State

February 11, 2005

Put away more for retirement, if you want

by Tim Ashley, Employee benefits manager

Did you know that you can contribute more to your retirement plan than the basic requirement?

Under the retirement plans offered at Iowa State -- TIAA/CREF, Iowa Public Employees Retirement System or substitute annuity plan -- you may be able to contribute additional amounts (called "elective deferrals" or "discretionary deferrals") to your retirement plan on a tax-deferred basis (meaning you don't pay taxes on your contributions until you withdraw them during retirement). The university does not match these elective contributions.

During the 2005 calendar year, most employees can contribute an additional $14,000 to their retirement plans. Those who will be 50 or older in 2005 may be eligible to contribute an additional $4,000, and certain employees who have been at Iowa State for at least 15 years may contribute an additional $3,000.

The minimum elective contribution is $20 per month. You can change the amount of your contribution anytime. Changes received before the 15th will be made that month.

Access to these funds is granted only when you retire, terminate your employment or for reasons of hardship (which is governed by IRS regulations).

For questions on how to start, increase or decrease your elective deferrals, contact the Benefits Office, 4-7680.

The minimum elective contribution is $20 per month. You can change the amount of your contribution anytime. Changes received before the 15th will be made that month.