2024 Updates
IRS Releases 2024 limits on retirement plans:
| Defined Contribution Plans | 2024 | 2023 | Change |
|---|---|---|---|
| Maximum employee elective deferral (VRSP 403(b) and 457(b)) | $23,000 | $22,500 | +$500 |
| Employee catch-up contribution (age 50 or older by year-end) | $7,500 | $7,500 | no change |
| Defined contribution maximum limit, employee + employer (age 49 or younger) | $69,000 | $66,000 | +$3,000 |
| Employee Compensation limit for calculating contributions | $345,000 | $330,000 | +$15,000 |
2023 Updates
IRS Releases 2023 limits on retirement plans:
| Defined Contribution Plans | 2023 | 2022 | Change |
|---|---|---|---|
| Maximum employee elective deferral | $22,500 | $20,500 | +$2,000 |
| Employee catch-up contribution (age 50 or older by year-end) | $7,500 | $6,500 | +$1,000 |
| Defined contribution maximum limit, employee + employer (age 49 or younger) | $66,000 | $61,000 | +$5,000 |
| Employee Compensation limit for calculating contributions | $330,000 | $305,000 | +$25,000 |
On March 1, 2022, Governor Kim Reynolds signed House File 2317. Division VI of that legislation excludes retirement income from Iowa taxable income for eligible taxpayers for tax years beginning on or after Jan. 1, 2023. If you have questions about whether this legislation will affect you, don't hesitate to contact your retirement plan vendor, TIAA or IPERS.
2022 Updates
There were two planned changes to the retirement programs administered by TIAA, which were announced in a letter mailed to retirement plan participants:
- The TIAA CREF Mid Cap Value Fund is being replaced by Columbia Select Mid Cap Value Fund. Any assets you have in TIAA CREF Mid Cap will remain in this investment unless you make a change to your account. Effective Jan. 3, 2022, new contributions were directed to Columbia Select Mid Cap.
- An annual plan administrative services fee, which covers the cost of recordkeeping, accounting, legal, investment advisory, and other services, has been implemented. Participant accounts are now charged a servicing fee of up to 0.023% per $1000 invested.
Who is affected by this change?
Any participant who had funds at TIAA was assessed the fee, including active employees and individuals who resigned or retired from the University of Iowa who have funds at TIAA.
What is the cost of the administrative services fee?
A fee of 0.023% means a participant pays $0.23 annually for every $1000 in assets. If the participant has $100,000 in assets, they will pay $23.00 annually or $5.75 per quarter.
When is this fee taken from my account?
The first fee was to be taken at the end of the first quarter of 2022. Fees will be taken quarterly on an ongoing basis.
To learn more, contact TIAA at 800-842-2252 on weekdays, 8 am to 5 pm CST.