YURAP: A Guide to The Yale University Retirement Account Plan
Planning for retirement is a crucial part of securing your financial future—especially for Yale faculty and staff. In this guide, we’ll break down the Yale University Retirement Account Plan (YURAP), helping you understand your options, maximize your benefits, and make informed decisions for the years ahead.
Understanding Your Yale Retirement Benefits
As a member of Yale’s esteemed faculty, you likely value staying informed. That’s why I’ve reviewed every page of the Yale University Retirement Account Plan’s Summary Plan Description (SPD). This article highlights the structure of the plan and the key features that can help you optimize your retirement savings.
YURAP is administered by the Teachers Insurance Annuity Association (TIAA), and as a participant, you can log in to your TIAA account at any time to:
Make investment fund changes
Update contribution elections
Change beneficiaries
Monitor your account
The plan is funded through three primary sources:
Elective Employee Contributions
Employer Match Contributions
University Core Contributions
Elective Employee Contributions
Eligible employees are automatically enrolled to contribute 5% of their gross compensation pre-tax. While you can opt out, doing so may cause you to miss out on the full employer match—essentially free money Yale contributes on your behalf.
Automatic Annual Escalation
YURAP includes a built-in escalation feature:
On July 1st of each plan year, contributions increase by 1% (up to a max of 10%)
If you contribute less than 5%, it will be automatically bumped up to 5%
Contributions above 10% are allowed, but will not escalate automatically
IRS contribution limit (2025): $23,500
Catch-Up Contributions
If you're age 50 or older by year-end, you're eligible for catch-up contributions:
Additional $7,500 annually (2025 limit)
Added on top of the $23,500 elective deferral limit
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Employee Taxation Options: Pre-Tax vs. Roth
You may elect your contributions to be:
Pre-tax, which defers taxes until withdrawal
Roth (after-tax), which allows for tax-free withdrawals in retirement
Each option offers strategic benefits. Discuss your allocation with a tax professional or financial advisor to choose the right mix for your goals.
Employer Match Contributions
Yale matches 100% of your contributions up to 5% of your basic compensation. That’s a significant boost to your retirement savings that should not be overlooked.
University Core Contributions
Yale contributes to your retirement regardless of whether you contribute. Contributions are based on your income:
5% on the first $147,000 of compensation
7.5% on compensation between $147,001–$305,000
0% on compensation over $305,000
Example:
For instance, if a Yale Administrator named Susan earns $350,000 her core contribution would be calculated as follows:
$147,000 × 5% = $7,350
$158,000 × 7.5% = $11,850
Total Core Contribution = $19,200
These are in addition to her elective and employer-matched contributions.
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Investment Options Within YURAP
Investment options within your YURAP will include:
Mutual funds
Annuity contracts
Target Date Funds
If no election is made, funds default to the Yale Target-Date Plus model, which automatically adjusts your asset allocation as you near retirement.
Why This Matters:
While target-date funds offer simplicity, they may not reflect your personal risk tolerance—especially for those nearing retirement. A more customized allocation may be more appropriate.
Vesting
Good news—you are fully and immediately vested in all YURAP contributions. According to the Summary Plan Description: “You are always fully and immediately vested in your account.”
This means you retain full ownership of your funds—even if you leave Yale.
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Plan Expenses
YURAP participants are charged a flat quarterly “plan servicing fee” to cover administrative costs. Additional fees apply if enrolled in the Target-Date Plus Service, this fee covers the cost of an independent fiduciary to manage the fund’s portfolio.
Important:
If you terminate employment, Yale may begin charging your account a pro rata share of administrative expenses—even if it continues to subsidize the added costs for current employees.
Taking Distributions
Generally, you cannot withdraw funds before age 59½ without penalties unless:
You’re called to qualified military service for over 179 days
You meet criteria for a hardship withdrawal
You have birth/adoption related expenses within one year of birth or adoption.
Required Minimum Distributions (RMDs):
You must begin RMDs by April 1st of the year you turn 72 or the year you terminate employment, whichever is later.
Additional Plan Considerations
Topics not fully covered here but worth exploring:
Impact of leave of absence or disability
Taking loans or withdrawals
Death benefit distributions and beneficiary designations
These can significantly affect your retirement readiness and should be reviewed with a financial professional.
Final Thoughts
This article serves as a high-level overview of the YURAP and its key features—from contribution strategies and vesting to investment options and plan fees.
To go deeper into how YURAP aligns with your personal retirement goals, I invite you to schedule a call with me. Together, we can build a customized retirement plan to help ensure your financial security in the years ahead.
Let’s have a 20 minute phone call to discuss your financial goals, and I’ll share options for how I can help.
As well stay tuned as we help you navigate your exit from academia in our next blog post: “From Tenure to Retirement: A Guide for Yale Faculty”
If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question.
As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!
Written by Ryan Morrissey
Founder & CEO of Morrissey Wealth Management
Host of the Retire with Ryan Podcast