Deseret 401(K) Plan
As an eligible employee, you can begin securing your financial future by participating in the Deseret 401(k) Plan. You may contribute a percentage of your gross income each pay period on a Before-tax or After-tax basis. Brigham Young University will make a matching contribution of up to 4% into your account.
Eligibility
You are eligible to begin participating in the Deseret 401(k) Plan on your hire date if you are:
- At least 21 years old
- Scheduled to work at least 1,000 hours per calendar year
- Employed by a participating employer, and
- Not hired into an excluded class (Visiting Faculty, Research Associate, ect.)
BYU Matching Contributions
All eligible university personnel are eligible to receive BYU matching contributions according to the schedule below:
| Employee Contribution | Employer Match | Total Contribution |
|---|---|---|
| 1% | 1% | 2% |
| 2% | 2% | 4% |
| 3% | 3% | 6% |
| 4% | 3.5% | 7.5% |
| 5% or more | 4% | 9% or more |
Vesting
Vesting means ownership of the funds in your account. You are always 100% vested in the value of your contributions to the Deseret 401(k) Plan, including BYU's employer match contributions. This means that if you terminate your employment with the University you will receive not only your own contributions but also the University's matching funds and all earnings.
Account Types
You may make employee contributions to any or all of the two account types: the Before-tax 401(k) and/or after-tax Roth 401(k).
- All of your contributions may be deposited into one or more options; however, only one employer matching contribution will be made, and it will be deposited into your account on a before-tax basis.
- The total annual employee 401(k) contribution must not exceed the IRS Maximum limit (see table below.)
- The total Before-tax 401(k), after-tax Roth 401(k), Retirement Plus Plan and employer match may not exceed the IRS Maximum Limit (see table below.)
- Please be aware contributions to other retirement accounts such as the TIAA 403(b) would also count toward these limits. Contact Benefits Service to learn more.
- Click here to visit the irs.gov webpage for more contribution limit information.
401(k) and 403(b) IRS Contribution Limits | ||
| 2023 | 2024 | |
| Maximum Employee Contribution | $22,500 | $23,000 |
| Catch-up Contribution (50 or older) | $7,500 | $7,500 |
| Combined employer and employee 401K limits | $66,000 | $69,000 |
| Total with catch-up contributions (50 or older) | $73,500 | $76,500 |
Contributions And Earnings
You may change your contribution percentage at any time. The percentage must be in one percent increments; no fractional percentages are allowed. To change your 401(k) contributions, log into your DMBA account at www.dmba.com. Once you login, there should be a tile on the dashboard home screen for your 401(k) titled “Deseret 401(k) Plan.” Click on the blue “quick links / YTD” link on that tile, and it will flip the tile over. Then on the flipped over tile you can click on “view/change contributions” to go out into your account. Once you are in your account on the contributions page, click “edit” on your current selections.
Be sure once you change your percentage that you continue to go forward until you receive a confirmation that the changes went through
The tax treatment of contributions and earnings are detailed in the following table:
| 401(k) Before Tax | Roth 401(k) After Tax | |
|---|---|---|
| Employee Contributions | Taxed when withdrawn | Taxed before contribution |
| Employee Contribution Earnings | Taxed when withdrawn | Tax free (if you meet qualifications) |
| Employer Match | Taxed when withdrawn | Taxed when withdrawn |
| Employer Match Earnings | Taxed when withdrawn | Taxed when withdrawn |
Investment Funds
The Deseret 401(k) Plan offers eleven individual funds and five pre-set mix options for the allocation of your contributions. You are allowed to change the investment mix once every 15 days. Before-tax and after-tax funds are combined for investment purposes.
The preset mixes are designed to match your general investment horizon until you begin to significantly use your money:
- Stock-only preset mix: 12+ years
- Long-term preset mix: 12+ years
- Intermediate preset mix: 5 to 11 years
- Short-term preset mix: 0 to 4 years
- Specialty income preset mix: 0 to 15 years
Withdrawals
Funds may only be withdrawn if there is one of the following distributable events:
- Age 59½
- Death
- Permanent disability
- Early retirement (age 55+)
- Termination of employment
- Financial hardship
Before-tax funds that you withdraw are subject to federal and state income taxes. Tax laws require a mandatory 20% withholding. Also, an additional tax penalty equal to 10% of the taxable portion of your withdrawal will be imposed on withdrawals made prior to age 59½.
Deseret 401(K) Plan Loan Program
To have more access to your 401(k) savings while employed, a loan program is available. The loan provision enables you to:
- Borrow up to 50% of the total account value.
- Have interest credited back to your account.
- Repay the loan through payroll deductions.
- Avoid withdrawal restrictions, taxes, and penalties incurred when making a withdrawal.
You can only have one 401(k) loan at a time. Loan payoff is only allowed in full; no partial payoff payments are allowed. After one loan is paid off, there is a 45 day waiting period to apply for another loan.
For more information on the 401(k), please select a handbook below.
Attached Documents:
deseret_401k_plan_2018.pdf