IU Finance continually works to update policies to ensure alignment with state and federal laws. Over the last year, IU Finance has been reviewing and updating its policy regarding reimbursements to IU employees when personal funds are utilized.

Beginning July 1, an update to the FIN-ACC-620 Accountable Plan Policy will take effect that impacts how reimbursements, P-Card and travel card transactions are handled. These policy updates ensure IU’s continued compliance with external regulations.

IU’s Accountable Plan Policy aligns with IRS rules which allow employees 60 days to submit expense reports and request reimbursement for travel or other business expenses purchased with personal funds. Submissions made after 60 days may still be reimbursed, but the amount will be treated as taxable income to the individual, resulting in reduced net pay. No reimbursements will be issued for expenses submitted after 120 days.

Although the policy and timing requirements change July 1, tax implications of these changes will officially begin on January 1, 2026. This will allow time for faculty and staff to adjust to the updated policy, supported by ongoing education and communication for the IU community.

For the remainder of the calendar year, IU Finance will work with financial leaders across IU to monitor these changes. This includes communicating with individuals who would have been impacted by taxation and identifying areas where additional training and education may be necessary.

To get ahead of the January 1, 2026, date, please make it a priority to submit all receipts and expense reports within the 60-day timeframe moving forward.

If you have questions or need support, please contact your campus or school finance office, or contact the Financial Training & Communications team at estc@iu.edu. We also encourage you to review the following resources:

• Travel and the Accountable Plan Policy change webinar recording
• P-Card and the Accountable Plan Policy change webinar recording
• Out-of-Pocket Reimbursement and the Accountable Plan Policy change webinar recording