IF YOUR WORK FOR A PUBLIC SCHOOL OR A 501(C)(3) TAX EXEMPT ORGANIZATION, A 403(B) IS A GREAT WAY TO SAVE FOR RETIREMENT
Who Can Participate in a 403(b) Plan?
The following employees are eligible to participate in a 403(b) plan.
- Employees of tax-exempt organizations established under section 501(c)(3). These organizations are usually referred to as section 501(c)(3) organizations or simply 501(c)(3) organizations.
- Employees of public school systems who are involved in the day-to-day operations of a school.
- Employees of cooperative hospital service organizations.
- Civilian faculty and staff of the Uniformed Services University of the Health Sciences.
- Employees of public school systems organized by Indian tribal governments.
- Certain ministers.
Contributions
403(b) plans can receive the following types of contributions:
- Employee Deferrals
- Employee Roth Deferrals
- Employee After-Tax Deferrals
- Employer Non-Elective Contributions
- Employer Matching Contributions
Portability
If you leave your job, you can leave your money in plan, roll your 403b account to into another employer’s eligible retirement plan, or to a traditional IRA or (if rolled directly) a Roth IRA.
Deferral Limits
- The annual individual savings deferral is limited by law to $19,500 for 2021.
- For individuals age 50 and older, an additional catch-up contribution of $6,500 is allowed in 2021. Special catch-up limits apply.
Let us exceed your expectations. Contact Jen Burnett at (888) 388-1040 to learn more.
