IU Supplemental Retirement Plans

Save more with IU supplemental retirement plans

Planning for retirement isn’t one-size-fits-all, which is why IU offers two voluntary supplemental retirement plans to help you save on your terms. Whether you’re looking to save through the IU Tax Deferred Account (TDA) or take advantage of the additional flexibility offered by the IU 457(b) , both plans can help you build retirement savings for your future. You make all contributions to these plans and can enroll at any time.

Advantages of these plans:

  • Options—you can enroll in one or both plans at any time and contribute up to the IRS limit in each.
  • Flexibility—you can make pre-tax or Roth after-tax contributions (or both).
  • Systematic retirement savings—your contributions are made regularly through IU payroll.

Comparing the plans

Key similarities

  • Both plans allow you to make pre-tax and after-tax contributions.
  • If you need to withdraw money while you’re still working for IU, both plans allow you to do so starting at age 59½.
  • Both plans are participant-directed and have the same investment choices.
  • Rollovers of existing retirement plan funds can be made into both plans.

Key differences

  • There is a 10% early withdrawal penalty on IU TDA distributions before age 59½, even if you no longer work for IU.
  • Annual recordkeeping fees.
  • Aggregation rules with other retirement plans.
  • Special catch-up contributions at age 62, 63, and 64 for the 457(b) plan.

Learn more and find out out how to enroll

IU 457(b) Retirement Plan

IU Tax Deferred Account (TDA) Retirement Plan

Detailed comparison

 

IU 457(b) Retirement Plan

IU TDA Plan 403(b)

Eligibility and general plan details

Eligibility

All IU employees

Academic and staff employees (including IU residents) appointed at 50% or more FTE

Part-time with retirement employees

Vesting

Immediate 100% vesting

Annual recordkeeping fee

$45

$28

Contributions

Pre-tax and Roth (after-tax) contributions

Yes

Contribution methods

Flat-dollar or percentage of pay

Employee contributions

Contribute up to $24,500 into each plan for 2026.

Employee catch-up contributions

Contribute an additional $8,000 if age 50+, or an additional $11,250 at ages 60–63, into each plan for 2026.

Age 62, 63, 64 special catch-up contributions

Some participants may be eligible to contribute up to an additional $24,500 for 2026 at age 62, 63, 64.

No

Rollovers

Yes

Distributions and withdrawals

Hardship distributions

No

Loans

Yes

Distributions
(withdrawals)

Upon separation of employment or at age 59½ while still employed by IU.

Early withdrawal penalty

No

10% penalty on distributions prior to age 59½.

Required minimum distributions (RMD)

Yes

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 +1-800-642-7131 or use the online scheduling tool to make an appointment. For other questions contact Fidelity Customer Service at +1-800-343-0860.