An employee newsletter from Human Resources

February2 2016


10 Markers for Retirement Planning

In honor of America Saves Week, you can expand your financial knowledge, gain new insights, and brush up on the basics.

The best time to plan for retirement is today, tomorrow, and throughout one’s working years! Select one or more of the following statements that best fit your current situation.


1I work for IU in a position that offers a retirement plan.

The best time to seek advice about retirement savings is as early as possible. You can schedule a personalized meeting with an IU Retirement counselor who will explain plan options and help you maximize the growth of your investments. 

2I had a life-changing event (marriage, baby, inheritance, divorce).

This is a vitally important time to review retirement accounts to see if you want to adjust contribution rates and update beneficiaries. You’ll want to also review life insurance; adjust contributions to tax-saving benefits (e.g., HSA account or college savings plan); and consider an IU supplemental retirement plan.  Seek advice from an IU retirement counselor who can help you navigate the financial reality and possibilities of your situation.

3I am an empty nester and/or I am paying off a mortgage.

This stage offers the opportunity to adjust tax-deferred benefits by using newly available cash. You may want to increase contributions to an IU supplemental retirement plan as well as the HSA account

4I am age 50 or above.

Beginning at age 50 you can defer paying income tax on more of your retirement savings in IU supplemental retirement plan accounts. For 2016, the “Age 50 catch up” is $6,000 in the two supplemental plans offered by IU. This is also a prime time to increase contributions to one of these plans. 

At age 50 start seeing an IU retirement counselor annually. Each year, you want to review options and stay on track with your plan for future retirement income. Do you participate in a PERF plan? You can review PERF benefits and get an estimate of your future pension benefits by visiting

5I am age 59 ½ or above.

The 10 percent penalty for taking an early withdrawal from a base IU retirement plans ends. If you want to leave IU employment to retire you can withdraw funds from the plan without penalty.

If you are enrolled in the IU Tax Deferred Annuity (TDA), a supplemental plan, you can withdraw funds from that plan without penalty. 

It is worthwhile to see if you are eligible for IU Retiree Status and to learn about the benefits of achieving this status.  

6I am age 62. 

At age 62 you become eligible for reduced Social Security benefits. Review your full benefit age (based on year of birth) at the official website for Social Security Administration. Note that certain people who sign up for reduced benefits while still working may be subject to withholding of benefit if their income exceeds certain annual limits. Please seek advice at this stage.

7I am age 65.

At age 65 you become eligible for Medicare. The initial enrollment period starts three months before the month you reach age 65.  If you or your spouse is covered by an employer’s health care plan you can wait to enroll until employment ends—as long as you are not receiving a reduced Social Security benefit. Also, eligibility to put tax-free contributions into an HSA may be limited by enrollment in Medicare.

8I am age 66-67.

Depending on your year of birth, at age 66 or 67 you reach full Social Security age meaning Social Security benefits will not be reduced. You can remain employed and still draw Social Security benefits. Besides the obvious reasons for continuing to work, doing so is an opportunity for you to increase contributions to any applicable IU supplemental retirement plans

9I am age 70.

If you delayed starting Social Security benefits you can now start and enjoy the increased monthly benefit for waiting, whether employed or not. 

10I am age 70 ½.

If you are no longer working, you must start taking distributions from retirement plans with this requirement.  If you are still employed, you are not required to take distributions from IU plans but you must take them from any IRA’s. Seek advice from a trusted tax advisor about these distributions. 

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