Deseret 401(k)

Deseret Mutual offers a 401(k) retirement savings plan for all eligible employees. Employees can contribute a percentage of gross income each pay period, and BYU-Idaho will match a percentage of the contribution.

Contribution Match Percentages

For those contributing to the 401(k) retirement savings plan, BYU-Idaho provides a percentage for percentage match to your contribution up to 3%. For example, if you contribute 3% into a 401(k) account, BYU-Idaho will contribute 3%, which equals a total of 6% invested into your retirement. The maximum match to your contribution is 5/4. This means that if you contribute 5% or more into a 401(k) account, BYU-Idaho will contribute 4%, which equals a total of 9% or more that you will be investing in your retirement.

Vesting

Vesting is the ownership of the funds in your account. At BYU-Idaho, you are always 100% vested in the value of your contributions to the 401(k), which includes BYU-Idaho's matching contributions as well. This means that if you end employment with the university, you will receive all funds contributed to your account, as well as any earnings.

Account Types

Once you choose what percentage of your income will be invested, you will then need to decide which type of savings account to invest in. There are three account types to which an employee may make contributions: the before-tax 401(k) and after-tax Roth 401(k). Changes can be made to contribution percentages at any time.

401(k) Before Tax

In the 401(k) before tax account, your contributions are made before tax is withheld. This means that the money you invest is tax free. While this lowers your taxable income, all of the funds in this account will be taxed upon withdrawal, including the original investment and any growth earned.

Roth 401(k) After Tax

When you invest in the Roth 401(k) account, your contributions will count towards your taxable income for the year. However, when you withdraw the funds from the Roth account during retirement, all of your investment and growth is tax free.

Contribution Maximums

Each of the accounts has yearly contribution maximums. For the before tax 401(k) and the Roth 401(k) after tax combined, the annual maximum for 2020 is $19,500. If you are over the age of 50, there is an additional $6,500 that you can invest in these accounts as a catch-up contributions, There is a $57,000 contribution maximum for all the accounts combined, including the employer contributions.

Financial Guidance

If you are looking to get personalized guidance on which account type options are best for you, we strongly recommend meeting with our DMBA Financial Planner, Lisa Stott.
Find out how to set up an appointment here.

Learn more