Northwestern Retirement Plan
Hired Before 1/1/2020: Any benefits-eligible employee scheduled to work half-time or more (18.75 or more hours per week) and is at least age 24, may participate in the Northwestern University Retirement Plan starting the first pay period available after their one-year anniversary.
Hired On or After 1/1/2020: Any benefits-eligible employee scheduled to work half-time or more (18.75 or more hours per week) and is at least age 21, may participate in the Northwestern University Retirement Plan starting the first pay period available after their two-year anniversary.
This allows the following pre-tax contribution types:
- Unmatched contributions of 5%. This is funded entirely by Northwestern University from eligible earnings and will automatically start the first pay period available after the one-year anniversary. The employee may choose to invest with Fidelity and/or TIAA. The default choice, if an election is not made, is Fidelity.
- Matched contributions of 1%-5% of eligible earnings. Northwestern University matches employee contributions if the employee makes this election. Any prior contribution selected by the employee to the Voluntary Savings Plan will cease the pay period after the one-year anniversary unless an election is made to contribute to the Voluntary Savings Plan after the 5% matched election is chosen.
- Supplemental contributions. If contributing 5% in Matched contributions, then supplemental contributions to the Voluntary Savings Plan are allowed as a percentage of eligible earnings or as a flat dollar amount. This is entirely funded by pretax contributions by the employee.
If you are an employee who is not eligible to participate in the Northwestern University Retirement Plan, you may participate in the Voluntary Savings Plan starting the first available pay period after your date of hire.
Your 403(b) retirement contributions are calculated by using your base salary including any eligible earnings (contact the Payroll Department regarding earnings that are pensionable).
Additional pay for supplemental pay, temporary assignments and additional assignments are included for employees who do not meet the IRS limit of highly compensated, which is $130,000 in 2020.
IRS contribution limits
Use this 403(b) Supplemental Contribution Calculator to calculate your supplemental contribution for 2020 up to the IRS limit.
|Contribution Source||2020 Annual Limits|
|Eligible salary limit for retirement plans||$285,000|
|Employee total contribution limit||$19,500|
|Age 50 catch-up limit (above and beyond the limit)||$6,500|
|Employee and employer aggregate contribution limit||$57,000|