Plan Descriptions

On this page: Similarities | Differences

Similarities of both plans:

•  Benefits are based solely on a participant's plan account balance •  Employees make all contributions to the plans •  Academic & staff employees appointed at 50% or more full-time equivalent (FTE) are eligible to participate immediately •  Hourly employees who are appointed as "PERF Hourly" are eligible to participate immediately •  A participant may make contributions up the IRS limit •  A participant age 50 or older may make additional contributions to a plan up to the IRS limit •  A participant is always 100% vested in his or her plan accounts •  A participant makes all investment decisions concerning his or her plan accounts

•  Hardship distributions are not allowed to be made to participants from the plans •  A participant must begin to receive a distribution from each plan on or before April 1 st of the year following the year in which he or she attains age 70½ or terminates employment, if later •  A participant may choose to receive a distribution from his or her plan accounts as a single sum distribution, an annuity, an installment, or any combination thereof •  Contributions will not be included in a participant's income that is reported to the federal, state, or local governments for income tax purposes •  A participant will pay employment taxes (i.e., Social Security taxes) on contributions •  Plan distributions are subject to income tax

Differences between the plans:

IU Retirement Savings Plan	IU TDA Plan
IRS Code Section 457(b) plan	IRS Code Section 403(b) plan
Can withdraw funds upon termination of employment with IU	Can withdraw funds upon termination of employment with IU or on or after attaining age 59½ while still employed at IU
Offers Age 62,63, or 64 catch-up contribution	No additional catch-up contributions
Contributions not limited by the maximum contribution amount (IRS Code Section 415 limit).	Contributions limited by the maximum contribution amount (IRS Code Section 415 limit). See the plan for details.
IU-approved investment companies are: TIAA-CREF Fidelity Investments	IU-approved investment companies are: TIAA-CREF Fidelity Investments