This voluntary supplemental retirement plan is available to all IU employees. You make all contributions to the plan, and are always 100% vested in your account.
You decide whether to make pre-tax or after-tax (Roth) contributions, and whether to contribute a set dollar amount or percentage of your pay. Contributions are taken from each paycheck and can be changed at any time.
The IRS imposes certain limits on the amount you may contribute, which increases after age 50.
Roth catch-up contribution rule begins in 2026
Starting in 2026, employees age 50+ earning over $150,000 must make catch-up contributions as Roth (after-tax).
You can enroll in one or both of IU’s supplemental retirement plans at any time. You must set up your plan account, choose investments, and designate your beneficiaries.
Starting in 2026, if you are age 50 or older and earn more than $150,000 in FICA wages in the previous year (Box 3 on your 2025 form W-2), any catch-up contributions you make in 2026 must be Roth (after-tax) contributions. If your wages were $150,000 or less, you can make either pre-tax or Roth catch-up contributions.
This requirement doesn’t kick in until 2026, so there’s time to meet with a Fidelity consultant or tax advisor to plan ahead. You can request changes to your contribution type or amount through the Employee Center.
You can withdraw your IU 457(b) account funds while you are still employed by IU if you are age 59½ or older, or at any age after your IU employment ends.
You may be eligible to take a loan from your IU 457(b) account. However, you are limited to one loan at a time across all of your IU supplemental retirement plan accounts (IU TDA and 457(b)) held at Fidelity. In most cases, you don’t pay taxes or penalties on a loan but you do repay the loan with after-tax dollars plus interest and there may be additional fees.
To request a loan, contact Fidelity at +1-800-343-0860 or log in to your Fidelity NetBenefits account.
The IRS requires you to begin taking distributions from certain retirement accounts (called “required minimum distributions” or RMDs) starting at age 72 or 73. This requirement only kicks in after you separate or retire from IU — as long as you are still working, you can defer RMDs without penalty until you retire.
You must take your first RMD by April 1 of the year after you reach the required age, and then by December 31 each year after that.
For questions about RMDs, contact retirement investment provider. View the IRS top questions and answers about RMDs.
When your employment with IU ends, contributions to your retirement plan accounts also end. However, you have several options for the funds that remain in your accounts, including leaving them in your IU accounts, withdrawing your vested plan balance, or moving your funds to another plan. Learn about all of your options in the Benefits After Separation Guide.
IU’s dedicated Fidelity Workplace Financial Consultants are available year-round to help you understand your plans and investment options. Whether you’re just getting started, planning for retirement, or somewhere in between, they’re here to assist you.
Call Fidelity at +1-800-642-7131 or use the online scheduling tool to make an appointment. For other questions contact Fidelity Customer Service at +1-800-343-0860.
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