Bringing your past retirement assets to your job at IU
You may roll assets from another employer’s retirement plan or IRA into the IU Tax Deferred Account (TDA) Plan or the IU 457(b) Retirement Plan at any time.
Consolidating your retirement accounts by rolling funds into your IU plans offers the following advantages:
- Easily view all of your accounts and investments in one place
- More effective goal setting and retirement plan
- Potential for fee reductions
- Easier for your beneficiaries to manage in the future
Which types of rollovers are accepted?
The following types of pre-tax eligible rollover distributions can be accepted into the IU TDA and 457(b) plans: 401(a), 401(k), 403(b), Governmental 457(b), and IRA. After-tax Roth amounts from another employer retirement plan can also be rolled into the TDA and 457(b) plans. Roth IRAs can only be rolled over to another Roth IRA, and therefore cannot be rolled into the IU plans. If you have 457(b) from a private university or college, it is classified as a non-governmental 457(b), which cannot be rolled into any of the IU plans. It is important to also note that there may be restrictions on the types of accounts certain assets may be moved into.
Important considerations before you roll assets over
- When you do a rollover, the money becomes subject to the rules of the new plan, so it is important to compare the plans and be sure you understand any relevant differences.
- If you are rolling over assets into one of the IU plans from a different type of plan, it may affect the tax treatment of distributions you take later. This may cause you to lose important tax advantages.