Separate from service after you're vested (after three years) and you keep everything.

If you separate from employment at UK prior to being vested (after three years), the contributions you have made to your retirement funds will not be affected by vesting requirements—but you will forfeit all funds from UK’s employer match contributions. All contributions from UK will be accounted for separately from the employee’s contributions, including gains and losses. One year after you separate, the forfeited funds from UK’s contributions will be returned to UK and used to offset future employee benefits costs.

If you separate from service at age 65 or older you will automatically be vested regardless of the number of years of vested service.

UK's vesting period is three years for all eligible employees.

Vesting means that your right to retirement income benefits provided as a match by the university cannot be revoked, even if you leave the university, after three years of regular full-time service.

Check with your carrier, Fidelity or TIAA, for details specific to your account but here’s an overview.

Loans

• Loans can be obtained for active employees and retirees who are enrolled in a UK 403(b) or 457(b) retirement plan.
• Employees may borrow up to 50% of the balance in their 403(b) or 457(b) account with Fidelity or up to 45% with TIAA ($50,000 maximum).
• The minimum amount for a loan is $1,000.
• The maximum loan period is five years. The IRS allows up to 10 years for a loan solely to purchase your primary residence. Documentation is required.
• There is a maximum of three outstanding loans at any time. Each retirement carrier may have additional rules related to the type of investments involved or company policies.
• Fees for loan administration charged by the retirement carrier, if applicable, may vary and are the responsibility of the employee.
• Employees who default on their loan will be subject to taxation by the IRS for the entire amount of the loan and penalties, if they are under age 59½. In addition, a loan default will prohibit any future loans from your retirement plan.

Hardship Withdrawals

• Hardship withdrawals are available through TIAA and Fidelity after all other sources of income are exhausted, including retirement loans.
• Funds available for hardship withdrawal are limited to:
  • 1)Amounts originally invested in annuity contracts and annuity invested funds equal to the employee 5% contributions through TIAA, or
  • 2) voluntary retirement plan contributions to either vendor.
• Employee 5% contributions to mutual funds/custodial accounts at either vendor, transfers to annuity investments, earnings from investments, and the employer 10% match are not eligible for hardship withdrawals.
• Distribution amounts cannot exceed the need documented. Payments can be "grossed-up" to accommodate the 20% federal tax withholding. No maximum hardship amount.
• The IRS will impose a 10% penalty for early withdrawal if the employee is under age 59½.
• Documentation of need is required for a hardship withdrawal and must be submitted along with other necessary Hardship paperwork before the withdrawal is approved.
• Hardship withdrawals are available under the IRS guidelines for:
  • Medical expenses for the employee, employee's spouse or dependents that exceed 7.5% of the Adjusted Gross Income (Must provide tax documentation and dependent verification documentation, such as birth certificates, or marriage license and tax document);
  • Purchase of the employee's principal residence
  • Post secondary education for the next semester or quarter for the employee, spouse, or dependent (Must provide dependent verification)
  • Payments needed to prevent eviction or foreclosure (Limited to 2 per calendar year).
  • Funeral expenses for a spouse or dependent.