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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 ?
You don't want to risk here your 401K or your 403B to your business acumen.
Additionally, schools may want to adopt an opt-out policy for retirement savings, where all employees are automatically enrolled in retirement savings accounts (generally 403b plans).
You can save using both pre-tax methods such as a 401K, 403B or traditional IRAs, and after-tax accounts such as Roth IRAs or individual accounts.
"Start saving when you are young and take advantage of your employers' benefits, such as your 403b or your 401k," said Kim Calloway of Cypress, Ca., who shared her perspective for Lincoln Financial's video.
Frecuencia Mes del ano de corte Sept Oct Nov Dic Ene Feb Mar 7-3 222b 262b 304c 30d 28d 27d 37d 6-4 405a 391a 418b 407b 403b 389b 282b 5-5 437a 462a 565a 527a 535a 476a 325a 4-6 129c 100c 132d 113c 130c 98c 103c Frecuencia Mes del ano de corte Abr May Jun Jul Ago 7-3 89c 54d 66c 23c 27d 6-4 228b 348a 360a 348a 341a 5-5 302a 207b 204b 207b 216b 4-6 252b 180c 179 b 172b 176c 7-3, 6-4, 5-5 y 4-6 = Frecuencia de corte de 7, 6, 5 y 4 emanas para otono-invierno y 3, 4, 5 y 6 semanas para primavera-verano, respectivamente.
The legislature can start by providing a 401(k) or 403b defined contribution plan for our new state workers so that future pension liabilities are a known quantity.
* Retirement Assets: IRAs, 401(k), 403b, 401a (this depends on where they or their spouse worked).
One early medieval child, aged around 1.5 years, was contained within a charcoal burial (B113) suggesting a high status, and eight children were located within the church, probably representing children of wealthy parishioners (B170, 171, 370, 384, 398, 403b, 349, and 155).
Press, 1998), 90, 125, 127, 138; ME, "Modem German Music," Leader 5 (April 29, 1854): 403b (attributed to ME [Letters, II:150 n.
(P=0.05) 14 13 10 12 11 2009 PP 442ab 511ab 430c 340c 403b PB 441b 513a 431c 343c 401b PS 452a 515a 459a 372a 413a PL 439bc 507ab 442b 360b 412a P 433c 503b 439b 356b 406ab CK 426d 490c 430c 354b 410a l.s.d.