Benefits Change Connection
IU Tax Deferred Account (TDA)
Formerly Tax Deferred Annuity Plan.
A participant remains 100 percent vested in his or her TDA after termination of employment and is not required to cash-out or transfer the account.
Upon termination of employment, a participant may:
- leave the accumulations in the account and continue to manage the investments;
- withdraw all or a portion of accumulations (subject to income taxes and/or penalty taxes); or
- roll over all or a portion of the accumulations to an eligible retirement plan, e.g., an individual retirement account (IRA).
Upon termination of employment, a participant must:
- Handle all transactions, including withdrawals and rollovers, directly with the investment company.
- Continue to direct the investment of the TDA Plan account.
- Notify the investment company of any name/address change.
- Notify the investment company of any beneficiary change.
- Begin to receive minimum required distributions on or before the required beginning date.