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Home University-funded Retirement Accounts

Rules for Faculty and Staff Newly Hired
on or after January 1, 2026

 

The University makes retirement contributions for most employees in benefit-eligible positions. For most employees, the University contributes an amount equal to 14.2% of pay. Eligible employees are automatically enrolled in the applicable retirement plan.

Certain individuals are not eligible for retirement benefits:  employees serving as an exchange employee from outside the State of Utah (such as J-1 exchange visitors) and educational trainees and individuals whose employment is incidental to their educational program (such as F-1 students, including those with OPT and OPT STEM authorization and postdoctoral fellows).

These plans are fully funded by the University, employees cannot contribute to these plans. Information about each of the University’s plans is also included in the Retirement Planning Guide.

401(a) Plan:


Feature

401(a) Plan (Originally enrolled before 01/01/2026)

401(a) Plan with Vesting* (Originally enrolled after 01/01/2026)

Eligibility
Most Benefit-eligible employees hired BEFORE 01/01/2026 are automatically enrolled. (See FAQ's for exceptions.)
Most benefit-eligible employees hired ON OR AFTER 01/01/2026 are automatically enrolled. (See FAQ's for exceptions.)
Rehire Rules
Re-enrolled in the same plan
Re-enrolled in the same plan
University Contribution
Amount equal to 14.2% of employee pay up to IRS maximum
Amount equal to 14.2% of employee pay up to IRS maximum
Contribution Type
Pre-tax
Pre-tax
Vesting
Immediately vested upon enrollment
100% vested after 4 years of service (cliff vesting)
Forfeiture
No
Separation before 4 years, for longer than 31 days. Forfeiture amount reinstated if rehired within 1 year of separation
Contribution Maximum
Pre-1996 - $72,000 (2026)
Post-1996 - $51,700 (2026)
Pre-1996 - $72,000 (2026)
Post-1996 - $51,700 (2026)
Withdrawals
Not Vested: Not available until fully vested. Fully Vested: See Withdrawal Chart
Loans
Loans allowed (up to two at a time). Apply through the investment provider; combined balance capped at $50,000.
Not Vested: Not available until fully vested.
Fully Vested: Same as 401(a) plan (originally enrolled before 01/01/2026)
Exchanges Between Providers
Allowed within plan (Fidelity ↔ TIAA)
Allowed within plan (Fidelity ↔ TIAA)
Rollovers Into Plan
Rollovers not accepted
Rollovers not accepted
Rollovers Out of Plan
32 days after separation from the University
Only after fully vested and 32 days after seperation from the University
*Vesting refers to how long an employee must work in a benefit-eligible position before the University’s contributions to the 401(a) Plan belong fully to them

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