457(b) Supplemental Retirement Savings Plan
Pre-Tax Contributions
- Amounts 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.
After-Tax Contributions - Roth Option
- The Roth option allows you to contribute after-tax money to the 457(b) Plan.
- All withdrawals of Roth savings are free from federal income tax in retirement (including any income/earnings received), 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.
You may defer up to the annual maximum amount allowed by the IRS (including the two catch-up options) in pre-tax contributions, after-tax contributions, or a combination of both.
For assistance in determining whether a pre-tax or after-tax option would be best for you, contact the customer service representatives of one of the Investment Providers or schedule a Confidential Retirement Consultation.
Withdrawal of Funds
- You may withdraw funds from your 457(b) Account while still employed at the University of Utah after you reach age 70½ (unless you experience an eligible hardship see below). The amount withdrawn may be taxable, but there are no penalties.
- If you are under age 70½, you may withdraw funds from your 457(b) Account after your employment with the University has been terminated for at least thirty-two days. Early withdrawals are not subject to 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 reviewed 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
RELATED LINKS:
- 403(b) Plan Summary
- To Enroll in the 403(b) and/or 457(b) Plan, complete a Salary Reduction Agreement and submit it to the University Benefits Department.
- To Stop or Change the Amount You are Contributing to the 403(b) and/or 457(b) Plan, complete a new a Salary Reduction Agreement and submit it to the University Benefits Department.
- To Change Your Investment Provider in the 403(b) and/or 457(b) Plan, complete a new a Salary Reduction Agreement and submit it to the University Benefits Department.
- University Investment Providers
- Change Investment Options
- Transfer Assets To Another Investment Provider
- Change Your Beneficiaries