As an eligible employee, you can begin securing your financial future by participating in the Deseret Mutual Thrift 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 Thrift 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 in an excluded class
BYU MATCHING CONTRIBUTIONS
University personnel eligible prior to April 1, 2010
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
University personnel eligible on or after April 1, 2010
Employee Contribution Employer Match Total Contribution
1% 1% 2%
2% 2% 4%
3% 3% 6%
4% 4% 8%
5% 5% 10%
6% or more 6% 12% 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 Thrift 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.
INVESTMENT OPTIONS
You may make employee contributions to any or all of the three investment options: the before-tax 401(k), after-tax Roth 401(k), and after-tax 401(a).
- All of your contributions may be deposited into one or more options; however, only one employer 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 $16,500. (Personnel age 50 or older may contribute an additional $5,000 catch-up option.)
- The total before-tax 401(k), after-tax Roth 401(k), after-tax 401(a), and match may not exceed $49,000 plus $5,000 catch-up if over age 50.
BEFORE-TAX OPTIONS
Features
- Your contribution is tax-sheltered.
- Interest earned is tax-sheltered.
- Contribution percentage may be changed anytime.
- Saves federal and state taxes each pay check.
- Becomes taxable upon receipt.
ROTH 401(K) OPTIONS
Features
- Contribution is not tax-sheltered
- Interest earned is tax-sheltered unless the withdrawal qualifies, then earnings are tax-free
- Contribution percentage can be changed anytime
AFTER-TAX OPTIONS
Features
- Your contribution is not tax-sheltered.
- Interest earned is tax-sheltered.
- Contribution percentage can be changed anytime.
INVESTMENT FUNDS
The Thrift Plan offers eleven individual funds and four pre-set mix options for the allocation of your contributions. By accessing the savings phone system or the DMBA website (www.dmba.com), you are allowed to change the investment mix once every 15 days. Before-tax and after-tax funds are combined for investment purposes.
WITHDRAWALS
Funds may only be withdrawn if there is a distributable event:
- Age 59½
- Death
- 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 penalty equal to 10% of the taxable portion of your withdrawal will be imposed on withdrawals made prior to age 59½.
THRIFT PLAN LOAN PROGRAM
To have more access to your Thrift Plan savings while employed, a loan program is available. The loan provision enables you to:
- Borrow employee and employer contributions and interest from the Thrift Plan.
- Have interest credited back to your account.
- Repay the loan through payroll deductions.
- Avoid withdrawal restrictions, taxes, and penalties incurred when making a withdrawal.