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Working at Cornell

457(b) Retirement Plan

The 457(b) Retirement Plan benefit offers eligible employees a way to save more for their retirement income.

Both endowed and contract college employees may be eligible to participate in the plan, based on their projected annual compensation for a given year and if it meets the base compensation of 67% of the IRS annual compensation limit for the calendar year (67% of $330,000 for 2023, or $221,100 and 67% of $345,000 for 2024, or $231,150).

If eligible, employees elect the amount or percentage that will be contributed to their 457(b) account directly from their paycheck, before tax. Participating employees may select how the contributions are allocated between Fidelity Investments and/or TIAA, and the type of investment funds in which to invest.

It should be noted that 457(b) Retirement Plan accounts are considered part of Cornell University’s general assets until the participant leaves Cornell University employment and begins their distributions.

Contributions

Contributions are subject to IRS limits and may change each calendar year. If eligible, you can elect to contribute up to $22,500 for 2023 and $23,000 for 2024.

Additionally, if you are between the ages of 62 and 70, you may be eligible to contribute to the 457(b) 3-year Special Catch-up Election; you may only elect the Special Catch-Up during the three consecutive years prior to, but not including, the year you reach your Plan’s normal retirement age. Please contact the HR Services and Transitions Center (HRSTC) at 1-607-255-3936, or by email at hrservices@cornell.edu, for more information.

Enroll or Change Contributions

Once determined eligible for the 457(b) Retirement Plan, employees use Workday to select the amount or percentage they wish to contribute to their 457(b) account, per paycheck, and what investment service provider to invest with, either with Fidelity Investments and/or TIAA.

How to Update Your Retirement Savings in Workday

Please note that if you do not see the ability to enroll in the 457(b) in Workday, please contact the HR Services and Transitions Center (HRSTC) at 1-607-255-3936, or by email at hrservices@cornell.edu, for assistance.

Rolling Over Other Retirement Plans

Employees in the 457(b) Retirement Plan may be able to rollover their account balances from other non-governmental tax-exempt Eligible 457(b) retirement Plans. For more information, or to obtain a rollover application, contact Fidelity Investments and/or TIAA directly.

Withdrawals

In-service withdrawal options are limited; please contact Fidelity Investments and/or TIAA directly for information.

Upon severance of employment from Cornell, you have a 60-day election period during which you must make a decision on when and how you want to receive benefits from the plan. The 60-day election period begins on the date of your severance from employment. You may elect to receive the benefits immediately after the election period expires or defer the commencement date to a fixed date in the future. However, benefits must begin no later than April 1st following the calendar year you attain age 70 ½ or retire/separate from service, whichever is later. If no election is made during the initial election period, you will receive a taxable default distribution of the entire account on or within 90 days following the date of your Severance from Employment. Please note, once you elect to defer the commencement date for receiving benefits into the future that date is irrevocable and cannot be accelerated.

We strongly encourage faculty and staff to contact either Fidelity Investments and/or TIAA to fully discuss the 457(b) retirement plan, prior to enrolling, to ensure they have a clear understanding of aforementioned 60-day election period on the benefit.