The following optional retirement plans are available to all University employees, regardless of FTE and eligibility for other University benefits.
403(b) and 457(b) Supplemental Retirement Savings Plans:- You may participate in one or both supplemental retirement plans.
- You may start or stop participation, or change your salary deferral amount any time.
- The following investment providers are available:
Fidelity Investments
(800) 343-0860
TIAA-CREF
(800) 842-2776
883-5100 (in Salt Lake City)
- Each investment provider has a wide variety of investment options available. For information on the life-cycle funds and core investment options offered by each investment provider, see the Summary of Performance and Expenses. This summary has data current as of the date on the front cover of the summary. For updated performance and expense information on each investment option or to change your investment options, click on the investment provider's link below to be redirected to the provider's dedicated University of Utah website.
Fidelity Investments
TIAA-CREF
- Minimum deferral to each plan is $25/month ($12.50/paycheck).
- The IRS and plan rules govern withdrawals and maximum deferral amounts. For 2006, the maximum deferral amount is $15,000 ($15,500 in 2007).
- You may defer the maximum amount to both a 403(b) and a 457(b) account.
- Each plan has an Age 50 Catch-up that allows employees age 50 or older to defer an additional amount per year. For 2006 and 2007, employees age 50 or older may defer an additional $5,000.
- You can rollover assets from other similar accounts.
- Each plan has a special catch-up exception available that may allow you to defer more than the maximum amount.
These accounts are not traditional savings accounts! There are strict rules governing withdrawal of funds. You should only defer money into one of these accounts if you intend to save for retirement.
403(b) Plan Highlights (different from 457(b) Plan)Pre-tax and After-tax Options
Pre-Tax ContributionsWithdrawal of FundsAfter-Tax Contributions - Roth Option
- Amounts you defer are deducted from your pay before taxes are calculated. As a result, the taxes you pay now will be lower. You will pay taxes on your retirement savings when you withdraw the money from your account. If you withdraw your funds after you retire when your income and tax bracket may be lower, the amount of taxes you pay could also be lower.
- Beginning December 1, 2006, the University will introduce a Roth option in the 403(b) Plan. The Roth option allows you to contribute after-tax money to the plan.
- The annual maximum amount above applies to your combined after-tax and pre-tax deferrals to the 403(b) Plan.
- All withdrawals of Roth savings are free from federal income tax in retirement (including any income received on your investments), as long as you are age 59½ or older when you make a withdrawal and have had the account for at least five tax years.
- Withdrawal of funds while still employed at the University of Utah is only allowed for employees age 59½ or older (unless you experience an eligible hardship see below). The amount withdrawn is taxable, but there are no penalties.
- After termination of your employment at the University, you may withdraw funds from your account after your employment has been terminated for at least thirty-two days. A 10% IRS penalty may apply if you are not age 59½ at the time of the withdrawal.
- Employees under age 59½ may only withdraw funds while still employed by the University if they experience an eligible hardship:
- Employees must complete a Certification for Hardship Withdrawal form and provide evidence of the hardship. The withdrawal must be reviewed by the Benefits Department for Internal Revenue Service and plan compliance.
- Eligible hardships may include:
- Unreimbursed medical expenses
- Purchase of a principal residence (excluding mortgage payments)
- To pay tuition and related educational fees for the next 12 months of post-secondary education
- To prevent eviction or foreclosure on a principle residence
You may only defer amounts to a 457(b) account pre-tax, there is no after-tax option in this Plan.
Withdrawal of Funds- Withdrawal of funds while still employed at the University of Utah is only allowed for employees age 70½ or older (unless you experience an eligible hardship see below).
- After termination of your employment at the University, you may withdraw funds from your account after your employment has been terminated for at least thirty-two days.
- The amount withdrawn is taxable, but there are no early withdrawal IRS penalties.
- Employees under age 70½ may only withdraw funds while still employed by the University if they experience an eligible hardship.
- Employees must complete a Certification for Hardship Withdrawal form and provide evidence of the hardship. The withdrawal must be approved by the Benefits Department for Internal Revenue Service and plan compliance.
- Eligible hardships may include:
- Sudden, unexpected illness or accident expenses
- Loss of property due to casualty
- Extraordinary and unforeseeable circumstances beyond your control
To enroll in a new 403(b) or 457(b) account, complete a Salary Reduction Agreement for the respective plan and submit the form to the University Benefits Department.
403(b) Plan Salary Reduction Agreement - pre-tax contributions only
403(b) Plan Roth Option Salary Reduction Agreement - after-tax Roth contributions (or combination of after-tax Roth and pre-tax contributions)
457(b) Plan Salary Reduction Agreement - pre-tax contributions only
Then, open an account with the investment provider and select your investment options and allocations. If you do not have an account with the investment provider when the first deferral is sent by the University, an account will be opened automatically and the funds will be invested in a life-cycle fund (based on your current age and anticipated retirement at age 65). You can change your investment options at any time (see above).
To stop deferrals or change your deferral amount, complete a new Salary Reduction Agreement and submit it to the Benefits Department.
If you have any questions regarding enrollment, forms, or processes, contact the University's Benefits Department. The University's Benefits Department cannot provide investment advice. If you have questions regarding available investment options, contact one, two, or all three of the investment providers.
Fidelity Investments(800) 343-0860
TIAA-CREF
(800) 842-2776
883-5100 (in Salt Lake City)