Thanks to new retirement plan features introduced by the IRS, staff and faculty will be able to save even more money for the future and have greater access to contributions in times of need. To support your retirement savings, Penn will add these new features to the University of Pennsylvania Basic and Matching Plan and the Supplemental Retirement Annuity Plan, effective January 1, 2025.

Super Catch-Up for Ages 60-63

Plan participants who are 60-63 years old at any time in the calendar year will be able to make more contributions via the new super catch-up provision. In 2025, the super-catch up allows you to add up to $11,250 to the standard contribution limit, so participants in this age group may defer up to $34,750.

For plan participants ages 50-62 and 64+, the standard catch-up applies, which will remain at $7,500 in 2025.

2025 Contribution Limits

These IRS limits apply to your deferrals into any qualified retirement plans in 2025, not just to Penn’s plans.

To update your contribution election in TIAA’s enrollment system, enter the percentage of your base gross pay that you want to be contributed to the retirement plan each pay period. Just include the total amount you want to contribute, including any catch-up or super catch-up. You don’t need to make a separate election for the catch-up or super catch-up in TIAA’s enrollment system. For more information, please contact the TIAA Retirement Call Center at (877) 736-6738. 

New Withdrawal Options

We understand that sometimes emergencies happen. New retirement plan options will go into effect in 2025 to help you in case you need additional funds.

• Loans and Hardship Withdrawals: Loans and hardship withdrawals will be permitted from the employee contribution money in the Matching Plan, as well as the Supplemental Plan. A maximum of two loans can be outstanding at any time.
• Hardship Withdrawals: Plan participants who are eligible to take a hardship withdrawal can self-certify that their need for a hardship withdrawal meets the allowable reasons. Participants won’t need to submit documentation of their need but should retain documentation in the event of questions from the IRS.

In addition to the IRS features above, Penn will make the following updates to its retirement plan withdrawal and loan provisions:

• In-Service Withdrawals
  • In-service withdrawals from the Basic, Matching, and Supplemental Plans will be permitted at age 59 ½.
  • In-service withdrawals of money rolled into the Matching and Supplemental Plans, as well as after-tax contributions, will be permitted regardless of age. (Note that after-tax contributions are different from Roth contributions. In-service withdrawals of Roth contributions will be permitted at age 59 ½ as noted in the first bullet point above).

Roth In-Plan Conversions Will Be Available

Roth in-plan conversions will be allowed in the Matching and Supplemental Plans. For more information about Roth in-plan conversions and their tax ramifications, please contact the Retirement Call Center at (877) 736-6738 or schedule an appointment with a TIAA retirement plan consultant at TIAA.org/schedulenow.

Help Is Available

As always, we encourage you to meet with a TIAA retirement plan consultant or other qualified financial professional to discuss how a loan and withdrawal could impact your retirement savings goals. You can ask general questions and schedule a consultation at (877) 736-6738. For more information about TIAA’s services, visit TIAA.org.