IU Tax Deferred Account (TDA) Retirement Plan
The IU Tax Deferred Account (TDA) plan is a section 403(b) defined contribution retirement plan. This is a voluntary employee-funded plan; therefore, the participant makes all plan contributions.
The information on this page is only a summary. Review the IU Tax Deferred Account (TDA) Plan – Plan Document (PDF) for a detailed description of the terms and conditions of the Plan.
An employee may enroll in this plan at any time. To enroll in the plan and begin making salary deferrals:
|Step 1||Complete the Salary Deferral Agreement (PDF) and return to IU Human Resources.|
|Step 2||Establish a plan account through TIAA and/or Fidelity. Note: If you already have an online account through TIAA or Fidelity for an IU retirement plan (i.e., an account that has received contributions within the last 12 months), you do not have to open a new account online.|
|Step 3||Make your investment allocations and beneficiary designations through your online account.|
Salary deferrals and catch-up contributions will begin as soon as administratively feasible following receipt of a fully completed Salary Deferral Agreement. Investment allocations and beneficiary designations must be made separately for each plan you are enrolled in. If you do not make any investment allocations, you will be placed into a default investment mix that is age appropriate and contains a mixture of stocks and bonds.
To be eligible to participate in the IU TDA plan, an employee must be a(n):
- Academic (including IU Residents) or Staff employee appointed at 50% or more full-time equivalent (FTE); or
- Temporary employee appointed as “Temporary with Retirement”
A participant may elect to defer from one to 100 percent of his or her compensation to the plan each calendar year up to the maximum allowed by law not to exceed the limits of federal tax code sections 402(g), 403(b), or 415. Remember, contributing even small amounts to a supplemental retirement plan can add up to a larger retirement savings over time.
- 2018 Maximum = $18,500 Annually
- 2019 Maximum = $19,000 Annually
Federal law limits the total amount of employer contributions and salary deferrals that can be made to the IU TDA plan, IU Retirement Plan, and the 403(b) plan portion (i.e., continued contributions) of the IU 18/20 Retirement Plan on behalf of an employee. View more information on these limits.
Age 50 or Older Catch-Up Contributions
Participants who are at least age 50 before the end of the calendar year may contribute up to an additional $6,000 per year.
A participant is always 100% vested in his or her plan account.
This is a “participant directed plan” meaning you are responsible for directing the investment of your plan account. Your investment selections should reflect your savings goals, timeline until retirement, and tolerance for risk. For help with maximizing your retirement savings and other financial goals, meet with a TIAA or Fidelity representative for a one-on-one investment counseling session.
Initial investment allocations can be made once you establish a plan account through TIAA and/or Fidelity.
You may change investment allocations at any time.
Distributions & Withdrawals
A participant may only withdraw vested funds from his or her plan account upon (1) attainment of age 59 ½ or older while employed at Indiana University, or (2) termination of employment with Indiana University.
Hardship distributions are not allowed to be made to a participant from the plan. A participant may receive a loan from his or her plan account by contacting the investment company. Loans are subject to both federal tax code and investment company rules and regulations.
For more information on Distributions and Withdrawals, visit the Frequently Asked Questions page.
Leaving the University
Upon termination of employment, a participant may:
- Leave accumulations in the plan account and continue to manage investments;
- Withdraw all or a portion of plan account accumulations (subject to income taxes and/or penalty taxes); or
- Roll over all or a portion of plan account accumulations to an eligible retirement plan (e.g., an IRA).
After terminating employment with Indiana University, transactions related to your plan account are handled directly with the investment company. Review the Benefits After Separation guide for details.
IU Human Resources
Attn: IU Retirement Plan
400 East 7th Street, E165
Bloomington, Indiana 47405-3085
- Enroll in or make changes to your account
- Update your beneficiaries
- Review the IU Tax Deferred Account (TDA) Plan – Plan Document (PDF)
- Similarities and Differences between the two supplemental retirement plans
- Maximum contribution limits for each plan
- IU supplemental retirement plans Frequently Asked Questions
- Schedule a Retirement Counseling Session with TIAA or Fidelity