Starting in January 2020, IU employees may roll assets from another employer’s retirement plan or IRA into the IU Tax Deferred Account (TDA) Plan or the IU 457(b) Retirement Plan at any time.
Which Types of Rollovers are Accepted?
The following types of pre-tax eligible rollover distributions can be accepted into the IU TDA and 457(b) plans: 401(a), 401(k), 403(b), Governmental 457(b), and IRA. After-tax Roth amounts from another employer retirement plan can also be rolled into the TDA and 457(b) plans. Roth IRAs can only be rolled over to another Roth IRA, therefore cannot be rolled into the IU plans.If you have 457(b) from a private university or college, it is classified as a non-governmental 457(b), which cannot be rolled into any of the IU plans. It is important to also note that there may be restrictions on the types of accounts certain assets may be moved into.
Consolidating your retirement accounts by rolling funds into your IU plans offers the following advantages:
- Easily view all of your accounts and investments in one place
- More effective goal setting and retirement plan
- Potential for fee reductions
- Easier for your beneficiaries to manage in the future
While there are advantages, there are also important considerations to take into account. For one, when you do a rollover the money becomes subject to the rules of the new plan, so it is important to compare the plans and be sure you understand any relevant differences. In addition, if you are rolling over assets into one of the IU plans from a different type of plan, it may affect the tax treatment of distributions you take later. This may cause you to lose important tax advantages. It is strongly suggested that you contact a tax advisor or a Fidelity Workplace Financial Consultant to discuss the advantages and disadvantages of rolling over your funds prior to making a decision.
How to Initiate a Rollover
If you would like to roll over assets from another retirement plan into an eligible IU retirement plan, you can initiate the process online by following the steps below.
Note: Rollovers are currently only available for the 457(b) Plan and the TDA Plan. If you are not already enrolled in one of those plans, you must do so prior to initiating the rollover process.
Printer-friendly Online Rollover Process
- Log in to Fidelity NetBenefits
- Click the plan name you intend to roll your funds into.
- Choose the Rollovers tab, then click the Roll Over to Plan button
- Click the radio button that corresponds with the type of account that is transferring, then click Continue
- Follow the prompts to complete the rollover.
Depending on the type of account being transferred and whether or not you have a physical check for the balance you wish to roll into your IU plan, you will be prompted to input additional information and/or provide certain details. Keep in mind that completing your rollover may take a few weeks. Below is a list of some of the items you may be asked to provide, verify, or request from your financial institution during the process:
- Your contact information
- Your contribution information
- Details of the plan account being transferred
- Check for the balance of the plan being transferred
For questions about the rollover process, contact Fidelity at 800-343-0860. To make an appointment, use the online scheduling tool, call 800-642-7131, or text MeetAtIU to 343-898.