(redirected from 403b Plans)
Also found in: Wikipedia.


A retirement investment plan for employees of certain non-profit organizations in which a contributor defers taxation on contributions until after withdrawal. Under a traditional 403(b), a worker places a portion of his/her pre-tax income into a 403(b) account and allows it to be invested. Taxation is deferred until withdrawal from the account, generally after retirement. 403(b)s are employee benefits, and workers must have a sponsoring employer such as a public school or a church in order to take advantage of one. They are the non-profit worker's equivalent of a 401(k).


A 403(b) plan, sometimes known as a tax-sheltered annuity (TSA) or a tax-deferred annuity (TDA), is an employer sponsored retirement savings plan for employees of not-for-profit organizations, such as colleges, hospitals, foundations, and cultural institutions.

Some employers offer 403(b) plans as a supplement to -- rather than a replacement for -- defined benefit pensions. Others offer them as the organization's only retirement plan.

Your contributions to a traditional 403(b) are tax deductible, and any earnings are tax deferred. Contributions to a Roth 403(b) are made with after-tax dollars, but the withdrawals are tax free if the account has been open at least five years and you're 59 1/2 or older.

There's an annual contribution limit, but you can add an additional catch-up contribution if you're 50 or older.

With a 403(b), you are responsible for making your own investment decisions by choosing from among investment alternatives offered by the plan. You can roll over your assets to another employer's plan or an IRA when you leave your job, or to an IRA when you retire.

You may withdraw without penalty once you reach 59 1/2, or sometimes earlier if you retire. You must begin required withdrawals by April 1 of the year following the year you turn 70 1/2 unless you are still working. In that case, you can postpone withdrawals until April 1 following the year you retire.

References in periodicals archive ?
Those with fiduciary duty include trustees of pension and profit sharing, 401k, and 403b plans.
Most of the risk management and insurance issues facing charter schools are the same that traditional public schools face: risk assessment, teacher screening, liability insurance for Parent Teacher Organizations, medical and benefits insurance, design of 403B plans and premises security.
They include: 401k plans, individual retirement account (IRA), simple IRA, TSP plans, 403b plans, and Keough Plans.
The ETFs will be available for 401k, 457 and 403b plans on the 401kDIRECT platform by means of the Mid Atlantic ETFxChange Program.
403b plans (similar to 401k's) are retirement plans for employees of certain tax-exempt organizations such as public schools, universities, hospitals and non-profit groups.
Districts must change the way they oversee tax-sheltered accounts -- also known as 403b plans -- offered to their employees due to new IRS regulations that take effect next Jan.
PCS specializes in creating customized 401k plans, both ERISA and non-ERISA 403b plans, 457(b) and (f) plans, profit sharing arrangements and executive-level non-qualified deferred compensation programs.
announced today the commercial release of its new investment advice product for 401k and 403b plans.
At that organization, he was responsible for the selection and management of investment advisors for a multi-manager, multi-fund product line of retirement options for 403b plans.
Located in Grosse Pointe Woods, Prather Investment Management specializes in advising individuals and investors who participate in 401k and 403b plans.
These products include IRA, SEP, SIMPLE, pension, profit-sharing 401k and 403b plans which are linked to leading mutual fund and insurance companies.