Voluntary Retirement Plans

Employees are divided into the following two classes:

• Class A - Class A includes employees whose most recent and applicable appointment period is continuous and are employed and designated in a full-time employment class. Class A employees are eligible to make elective deferrals out of their own compensation and receive an employer matching contribution.

• Class B - Class B includes employees designated as part-time or temporary. Class B employees are eligible to make elective deferrals out of their own compensation; however, they are not entitled to receive employer matching contributions.

Excluded employees are not eligible to contribute to the plan. An excluded employee is a former employee, an independent contractor or a student-employee who is enrolled and regularly attending classes at Auburn University.

The Roth 403(b) is an additional way to save in your plan where you contribute after-tax dollars from your paycheck. Unlike a traditional pre-tax 403(b), when you contribute to a Roth 403(b), at retirement you can then withdraw tax-free dollars from your account

Federal law limits the amount you may elect to defer under this plan during the 2025 calendar year to $23,500. If you are over age 50 or turn age 50 during the 2025 calendar year, you may defer an additional amount up to $7,500, for a total of $31,000.

Effective Jan. 1, 2025: The SECURE 2.0 Act will allow an increase in the age-based catch-up contribution limit for ages 60-63. If you turn age 60 during the 2025 calendar year, you may contribute up to the greater of $10,000 or 150% more than the regular catch-up amount in 2024 ($11,250). This will equal a maximum total contribution of $34,750 for the 2025 plan year. During the year in which you turn age 64, the catch-up limit will automatically return to $7,500 for the plan year.

These dollar limits may change each year with cost-of-living adjustments issued by the IRS in October. If you contribute to both pre-tax and after-tax Roth 403(b) accounts during the same year, all contributions to both accounts are combined to apply to the annual maximum.

Please note that the amount you defer must be made in a whole percentage and sent to one vendor at a time. You can increase, decrease or stop your deferral contribution at any time. After completing the appropriate forms, requests shall become effective on the first day of the month following receipt of such change, or as soon thereafter as administratively practicable.

Participants who wish to elect to defer 50 percent or more of his or her includible compensation must first contact Auburn University Human Resources to confirm adequate remaining includible compensation to pay for all other benefits for each pay period.

Employer matching contributions will be made for eligible employees in amounts equal to 100%; of elective deferral contributions up to 5% of your plan compensation.

The matching contribution cannot exceed $1,650 for any Plan Year (calendar year). If you contribute to both a pre-tax and after-tax Roth account during the same year, the Auburn University match is combined to reach the $1,650 annual maximum match.

Employee deferrals are always 100% vested. The employer matching contribution is subject to the following vesting schedule:

• Fewer than five years: 0%

• Five+ years: 100%