401(k) and 457 FAQs - Utah Retirement Systems(URS)

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401(k) and 457 Plans FAQs

How do I change my name, address, or beneficiaries?
What is my current balance?
Will I be able to withdraw the funds in my account in case of an emergency?
Should I invest in 401(k), 457, tax-sheltered annuity or an IRA - or all of them?
I recently quit my job and I need to know what options are available to me.
How much can I contribute each year to my 401(k) and 457 plans?
Can I defer money to both plans?
Can I transfer my 401(k) monies into my 457 Plan (or vice versa)?

How do I change my name, address, or beneficiaries?

You may now change your address, phone number and how you receive your transaction confirmation on this web site by clicking on the myURS button at the top left of this page. If you would like to change your name or beneficiaries, you will need to fill out the appropriate change form (Retired or Non-Retired) which is available in the Online Forms section of this web site or you may call the URS office to request a form.

What is my current balance?

You may retrieve your account balances from this web site by clicking on the myURS button at the top left area of this page or by calling the Interactive Voice Responce. If you need to establish a
personal identification number (PIN) for either the web site and/or the IVR, please call 1-800-688-401k and follow the prompts to establish a 4 to 12 digit pin number of your choice.

Will I be able to withdraw the funds in my account in case of an emergency?

We suggest you have an emergency fund outside of your 401(k) or 457 accounts. There are, however, provisions in both plans that allow for a Hardship Withdrawal of funds under severe and unforeseen financial emergencies. Please contact the 401(k) / 457 Department for details and qualifications of a Hardship Withdrawal. In addition, if your employer allows loans on the 401(k)/457 account you may take a loan for any reason. Please see the 401(k) & 457 Defined Contribution Plans - New Loan Policy for more details.

Should I invest in 401(k), 457, tax-sheltered annuity or an IRA - or all of them?

Deciding which retirement plans are most appropriate for you is something to be discussed between you and your financial planner. The Retirement Office will be able to assist you by providing you with educational materials on the 401(k), 457 and IRA Plans.

I recently quit my job and I need to know what options are available to me with my 401(k) and 457 accounts

401(k) and 457 Plan Withdrawal Options

Leave the money in the 401(k) Plan (except for the 2009 tax year, payouts must begin by the later of the age 70 1/2 or retirement).
Roll the funds to an Individual Retirement Account (IRA).
Withdraw the funds. You may withdraw the funds as a lump-sum, partial balance refund, or set up monthly, quarterly, semiannual, or annual payments in any amount you choose (as long as you do not exceed age 70 1/2 minimum distribution requirements). The funds are subject to federal and state taxes as withdrawn, the 401(k) may be subject to an early withdrawal penalty. The IRS requires a mandatory 20% federal tax withholding on withdrawals over $200. You will be exempt from the mandatory 20% withholding if you set up your account to pay over 10 years or longer.

How much can I contribute each year to my 401(k) and 457 plans?

Combined employer and employee contributions cannot exceed 100% of gross salary or $49,000 whichever is less. In addition, the employee's contributions cannot exceed amounts in table below for any given year. Any 403(b) contributions will reduce the amount you can contribute to your 401(k). If you want to contribute more than these amounts to your 457 plan and are within a few years of retirement, please contact our office for additional information about the special 457 catch-up plan.

Year	New Deferral Limit¹	Age 50+ Catch-Up²
2007	$15,500	$5,000
2008	$15,500	$5,000
2009	$16,500	$5,500
¹The 401(k) combined employer + employee contribution limit is $49,000. ²If you are 50 years of age or older, you can add these additional amounts to your 401(k) and/or 457 accounts.

Can I defer money to both plans?

Yes, you can defer funds to both plans if your employer is participating in both the 401(k) and 457 plans. You are able to contribute up to $33,000 using both plans plus and additional $5,500 to either or both plans if you are age 50 or older by the end of 2009.

Can I transfer my 401(k) monies into my 457 plan (or vice versa)?

If you have separated from employment you may transfer your 457 account to your 401(k). However, the funds rolled into the 401(k) would assume the attributes of that plan including the early withdrawal penalty. You could stop contributions to one plan and begin in the other if you choose.