- Search for and select the Employee Center task in One.IU
- Complete two-step login using your IU username/passphrase and Duo Click on the Benefit Details tile
- Click the Optional Benefit Changes tile
- Click the green Start Optional Benefit Change (OBC) button
- Read the information on the Welcome screen
- To progress through the OBC process, click the yellow Next button in the upper right-hand corner of the screen.
- Verify your personal information, payroll direct deposit and tax withholding details, and emergency contact, and make updates if needed
- Click Next to proceed to the next step
- Click the Start My Enrollment button
- On the next screen, click the gray Select button next to the event
- Under the Benefit Plans heading, find and select the plan you wish to change – Roth TDA or Roth 457(b)
- Under Contributions enter a flat-dollar amount or percentage of your pay that you would like to contribute each pay period
- Click Done in the upper right-hand corner to continue
- If you wish to change your contributions to other plans, repeat steps 9 – 11
- Once you have made all of your elections, review your elections by selecting the Enrollment Preview Statement button under the Enrollment Summary heading.
- Click the X in the upper right-hand corner of the screen to exit the preview. When you are finished, click the green Submit Enrollment button under the Enrollment Summary heading
- A confirmation message will appear on the screen once your elections have been submitted successfully and an e-mail confirming your submission will be sent to your IU email address within one business day
- If you do not receive an email, your changes were not submitted properly
- To review your submission at any time, log in to the Employee Center, select the Benefit Details tile, then the Benefits Statement tile
You can also complete and submit a paper Salary Deferral Agreement to IU Human Resources.
Roth contributions reduce your take-home pay more than if you made an equivalent tax-deferred contribution. This is because they are subject to income taxes when deducted from your paycheck.
IU supplemental retirement plans allow you to potentially contribute significantly more each year than you could to an IRA.
For example, you can enroll in both IU supplemental retirement plans (the IU TDA and the IU 457(b) plan), and contribute up to the IRS annual limit into each plan, each year.
In 2023, the limit was $22,500 per plan ($30,000 for those age 50 and older).
IRAs only allow you to contribute up to $6,500 per year ($7,500 if age 50 and older).
You don’t need to create a new Fidelity NetBenefits account for your after-tax Roth contributions if you already make tax-deferred contributions to an IU supplemental retirement plan, you are not issued a new account with Fidelity.
Any Roth contributions you make go into your existing account and are tracked separately from your tax-deferred amounts.
You cannot convert Roth contributions to pre-tax contributions.
Once you elect to make a Roth contribution, it is irrevocable. You can change future contributions to tax-deferred, but once the election has been made to designate a contribution as after-tax Roth you cannot change it to tax-deferred retroactively.
An in-plan conversion of pre-tax contributions to Roth is allowed.
You should set up an appointment with a Fidelity Workplace Financial Consultant to learn about your options and to request the conversion. You can schedule an appointment using the online scheduling tool or by calling 800-642-7131.
In general, the following conditions must be met to make a qualified tax-free and penalty-free withdrawal of Roth contributions and earnings:
- The account must have been established for at least five years (this is known as the five-year “holding period”); and
- The withdrawal must be taken at or after age 59½, or as a result of disability or death.
Distributions that don’t meet these conditions are considered non-qualified and may be subject to taxes and penalties.
