The IU Retirement Plan for Academic and Professional Staff Employees is a section 403(b) defined contribution retirement plan. All Plan contributions are made by Indiana University. Participants are not required, nor permitted, to make additional contributions to the plan.
Secondly, when can I retire from IU?
IU Retiree Status Eligibility
*For employees covered by the PERF retirement plan and separating at age 60, 61, or 62, Retiree status is reached with at least 15 years of IU service.
People also ask, what is a 403 B TDA plan?
What is a tax-deferred annuity plan? … Sometimes, a TDA plan is also referred to as a voluntary savings plan, a supplemental plan, a tax-sheltered annuity (TSA) or simply a 403(b) plan. A TDA plan is an employer-sponsored Defined Contribution retirement plan to which you can contribute a percentage of your base salary.
How do you find the Rule of 85?
The 85 point rule is when your age and years of service credit added together equal 85. Every year you work, you will gain two points – one for each birthday and one for the year of service credit.
When can I retire with perf?
En español | The earliest you can start collecting retirement benefits is age 62. You can apply once you reach 61 years and 9 months of age. However, Social Security reduces your payment if you start collecting before your full retirement age, or FRA.
Is a TDA the same as a 401k?
How a TDA Plan Works. Organizations offer tax-deferred annuity plans to eligible employees for long-term investment growth, similar to a 401(k) plan. Contributions to these plans are generally in one of three forms: The employer makes contributions to the plan through a salary-reduction agreement.
What is the difference between a 401k plan and a 403b plan?
These two tax-advantaged retirement plans are designed for different kinds of companies: 403(b)s are earmarked for non-profit organizations and certain government employers, while 401(k) plans are offered by for-profit companies.
How does a Roth deferral work?
A Roth 401(k) deferral is an after-tax contribution, which means you must pay current income tax on the deferral. Since you have already paid tax on the deferral, you won’t pay tax on it again when you receive a distribution of your Roth 401(k) deferral.