Tax Savings

With IU's tax-savings plans you can reduce the amount of income tax you pay each year. By contributing money from your salary on a before-taxes basis, your federal income, and in some cases, your state and local taxes, are lowered. The following plans are optional.

Tax Saver Benefit Plan
The Tax Saver Benefit Plan (TSB) helps you save money by reducing the amount of income tax you pay. With TSB, you set aside money from your salary before taxes. You can then be reimbursed for:

• Medical, dental, prescription, and vision expenses
• Dependent care costs (day care, babysitting, elder care)

Pre-Tax Commuting Expense Plan
This plan is similar to the Tax Saver Benefit. You pay for IU parking and mass transit expenses on a before-taxes basis. This reduces your tax liability and increases your take-home pay.

Tax Deferred Annuity
This plan is yet another smart way to lower your income tax and supplement other retirement benefits. Using a Tax Deferred Annuity, you contribute money to an investment account and defer paying taxes on the amount you contribute and the interest you earn until you withdraw the money.