Human Resources

To be eligible to participate in the IU TDA plan, an employee must be a(n):

• Academic (including IU Residents) or Staff employee appointed at 50% or more full-time equivalent (FTE); or
• Part-Time employee appointed as “Part-Time with Retirement”

All newly eligible employees are automatically enrolled in the plan at a 5% pre-tax contribution level, but have the option to waive or change their enrollment at any time. 

Existing eligible employees can enroll in the plan or change their contribution level at any time by following these step-by-step enrollment instructions. Instructions to setup your online Fidelity NetBenefits account, select your investments, and designate your beneficiaries are also available on this page.

Employees make all contributions to the plan. Contributions may be made on a pre-tax or after-tax Roth basis, and can be a flat-dollar amount or a percentage of pay. See the section below titled ‘Contribution Limits’ for additional details. 

Contribution Limits

• $23,000 for 2024 / $23,500 for 2025  for all employee (both pre-tax and after-tax Roth) contributions
• Plus an additional $7,500 for 2024/2025 if you are age 50+

Take Action

• Change your contribution amount or type
• Learn more about after-tax Roth contributions
• Review the IRS Contribution Limits
• Calculate your 403(b) contribution maximum  

A participant is always 100% vested in their plan account.

This is a “participant directed plan” meaning you are responsible for directing the investment of your plan account. If you do not select investments, your funds will be invested in the plan’s default investment option – and age-appropriate Vanguard Institutional Target Retirement Date Fund.

Take Action

• Review the Investment Options available under the plans.
• Learn how to change your investments at any time.

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 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.

Take Action:

• Watch a video: Explore Your Withdrawal Options at Fidelity
• For information on Required Minimum Distributions (RMDs) see the ‘Options When You Separate from IU’ section below.
• Contact Fidelity at 800-343-0860 or log in to your Fidelity NetBenefits account to learn about your withdrawal or distribution options.

A loan may be available from your IU TDA. You are limited to one loan across your IU supplemental retirement plan accounts (IU TDA and 457(b)) held at Fidelity.

Before you make the decision to take a loan from your account, consider the following:

• Loans are subject to both federal tax code and investment company rules and regulations.
• 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.
• Fidelity On-Demand Workshop: Understanding Plan Loans

To request a loan, contact Fidelity at 800-343-0860 or log in to your Fidelity NetBenefits account and select ‘Loans or Withdrawals’ from the Quick Links menu next to the plan name.

All plan contributions stop when your employment with IU ends. Upon termination of employment, you may:

• Leave accumulations in the plan account and continue to manage investments;
• Withdraw all or a portion of vested plan account accumulations (subject to income taxes and/or penalty taxes); or
• Roll over all or a portion of vested plan account accumulations to an eligible retirement plan (e.g., an IRA).

After terminating employment with the university, most transactions related to your plan account are handled directly with the applicable investment company. For more information, review the Benefits After Separation Guide.

Required Minimum Distributions (RMD) at Age 72
When you turn age 72 (or 73 if your 72nd birthday is after December 31, 2022), the IRS requires that you begin taking distributions from certain retirement accounts, called a “required minimum distribution” or RMD. You can take this first withdrawal either in the year you turn 72 or wait until April 1 of the next year. If you're still working, you can defer RMDs until after you separate/retire from IU without penalties. For example:

• If you turn 72 in 2022, your first withdrawal must be taken by April 1, 2023. But you’ll also have to take a second withdrawal by December 31, 2023.
• If you turn 72 in 2023, your first withdrawal is due by April 1, 2025, since you turn 73 in 2024.

For questions about RMDs, contact Fidelity or the account vendor directly.