Any non-student employee (including non-benefited employees) can choose to contribute to any supplemental retirement savings account available through TIAA as long as he/she is receiving a salary from BYU–Hawaii. Contributions are made through payroll deductions. BYUH does not make any matching contributions to these accounts. The two options are:
- TIAA 403(b) - similar to a 401(k); sometimes referred to as a supplemental retirement annuity
- TIAA Roth IRA - an after-tax Individual Retirement Account.
- Contributions are before tax; you are not taxed until it is withdrawn.
- Earnings are tax-deferred; you are not taxed until it is withdrawn.
- The contribution percentage may be changed at any time. You may also elect a fractional percentage for your contributions (not available in the DMBA 401(k)). Visit our benefits specialist to complete and sign a form.
You may only withdraw funds prior to age 59½ for the following reasons:
- early retirement (age 55+)
- financial hardship
Funds that you withdraw prior to age 59½ 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.
The annual contribution limit for 2019 is $19,000. Employees age 50 or older may contribute an additional $6,000 (up to $25,000 total). However, any contributions to a 401(k) also count toward this limit.
There are many investment options to choose from. Please visit our benefits specialist for plan materials which include a list of all available investment options.
TIAA ROTH IRA
- Contributions are after-tax; they are tax-free when withdrawn (if you meet qualifications).
- Earnings are tax-deferred; they are tax-free when withdrawn (if you meet qualifications).
- Contribution amount (not a %) may be changed at any time. Visit our Benefits Specialist to complete and sign a form.
The annual contribution limit is $6,000. Employees age 50 or older may contribute an additional $1,000 (up to $7,000 total). Any contributions to a 401(k) or 403(b) do not count toward this limit.
Please visit the TIAA website for additional information.