IU 457(b) Retirement Plan

A retirement savings option open to all employees

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.

Download the IU 457(b) Plan document

The IRS imposes certain limits on the amount you may contribute, which increases after age 50.

Understand your annual contribution maximum

Enroll or change your plan

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.

Take the next steps

Distributions and withdrawals

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.

  • Distributions of pre-tax contributions are subject to a 20% federal income tax withholding.
  • Distributions of Roth (after-tax) contributions are tax-free if they are “qualified distributions,” meaning they are made (1) after a 5-year holding period (begins January 1 of the year you made your first Roth contribution); and (2) after you reach age 59½, become disabled, or pass away.

Watch a video about withdrawal options at Fidelity

Loans

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.

Take Fidelity’s on-demand workshop: Understanding Plan Loans

When your employment ends

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.

Required minimum distributions

Following your separation from the university, the IRS requires that you begin taking distributions from certain retirement accounts—called “required minimum distributions” or RMDs—starting at age 72 or 73:

  • If you turned 72 on or before December 31, 2022, your RMDs begin at age 72.
  • If you turn 72 on or after January 1, 2023, your RMDs begin at age 73.

You must take your first RMD from each applicable retirement account by April 1 of the year after you reach the required age, and then by December 31 each year after that. However, as long as you're still working, you can defer RMDs until after you separate from IU without penalties. Learn more about your options after you separate from IU.

Get help with your retirement accounts

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 +1-800-343-0860 or use the online scheduling tool to make an appointment.