IU Tax Deferred Account (TDA) Retirement Plan

Add to your retirement savings

This voluntary supplemental retirement plan is available to benefits-eligible faculty and staff members, medical and optometry residents, and employees classified as part-time with retirement.

Newly eligible employees (except residents and dually employed physicians) are automatically enrolled in the plan at a 5% pre-tax contribution level, but you can waive or change this election during your initial enrollment or at any other time.

You fund the account through payroll deductions and are always 100% vested in the account. You choose if contributions are made as pre-tax or after-tax (Roth), and decide whether to contribute a flat-dollar amount or a percentage of pay.

Download the IU Tax Deferred Account (TDA) Retirement Plan document

The IRS limits how much you can contribute to your retirement accounts each year but allows for additional contributions starting at age 50.

Understand your contribution limits

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 TDA funds held at Fidelity while 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.
  • Distributions made prior to reaching age 59½ are generally subject to a 10% early withdrawal penalty, even if you are no longer employed by the university.

Learn more about your withdrawal options at Fidelity

Loans

You may be able to take a loan from your IU TDA. However, keep in mind that only one loan is allowed at a time across your IU supplemental retirement plan accounts (IU TDA and 457(b)) held at Fidelity.

In most cases, loans are not taxed or penalized but must be repaid with after-tax dollars (including interest) and may incur additional fees.

To request a loan, contact Fidelity at 800-343-0860 or log in to your Fidelity NetBenefits account.

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.

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.