Annual notice: 2025 retirement plan contribution limits
By IU Human Resources
July 22, 2025
Indiana University employees can grow their retirement savings by making voluntary contributions to one or both of IU’s supplemental retirement plans, the IU Tax-Deferred Account and the IU 457(b) plan. Here’s what you need to know about eligibility, enrollment and contribution limits for 2025.
Who’s eligible
- All employees who receive W-2 wages from IU can contribute to the IU 457(b) plan. This includes part-time employees and student academic appointees.
- Faculty, staff and medical/optometry residents appointed at 50% or more full-time equivalent, and employees classified as part-time with retirement, can contribute to both the IU TDA and IU 457(b) plans.
Enroll or make changes
Eligible employees can enroll in one or both plans, or change their contributions, at any time during the year by submitting an optional benefit change request through the Employee Center.
2025 contribution limits
The IRS limits how much can be contributed to each plan annually. For 2025, the limits are:
- $23,500 to the IU TDA plan and $23,500 to the IU 457(b) plan.
- An additional $7,500 to each plan if you are age 50 or older by the end of the year, which increases to $11,250 for the years you turn 60 to 63.
Contributions can be made pre-tax, after-tax (Roth option) or as a combination of both. This choice will affect your take-home pay, so consider speaking with a financial advisor or tax professional to find the right mix for you.
Need help deciding? IU’s dedicated Fidelity financial consultants are available to meet with IU retirement plan members at no cost. Schedule an appointment online.
If you contribute to other plans
If you contribute to retirement plans outside of IU, such as through another employer, it’s also important to be aware of federal contribution limits that apply across multiple plans.
402(g) limit on elective deferrals
IRC 402(g) limits the combined annual contributions that you can make to all 403(b) plans, including the IU TDA plan, 401(k) plans (including the IU Health 401(k) Plan) and salary reduction simplified employee pension plans.
- For 2025, this limit is $23,500, or up to $31,000 with the age 50 catch-up. This increases to $34,750 for the years you turn 60 to 63.
415(c) limit on total contributions
IRC 415(c) limits the combined amount that you and your employer can contribute to the IU Retirement Plan and IU TDA plan.
- For 2025, this limit is $70,000 or 100% of your compensation, whichever is lower. This does not include age 50 catch-up contributions.
- Contributions from other employers’ plans may count toward this limit if you own or control more than 50% of another employer, and that employer sponsors a retirement plan.
You’re responsible for tracking these limits across all of the plans you contribute to. If you exceed any of these limits, contact Fidelity at 800-343-0860 to discuss your options.
For questions about IU’s retirement plan options, contact IU Human Resources at askhr@Iu.edu or 812-856-1234.