A 403(b) plan, also known as a tax-sheltered annuity plan, is a retirement plan for certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers. A 403(b) plan allows employees to contribute some of their salary to the plan. The employer may also contribute to the plan for employees.
*Note: it is important to contact your plan administrator for complete details on your 403(b) plan.
*Note: www.irs.gov website was used to provide this information to you.
Grow tax-deferred until distributions are made from the plan
A 403(b) plan may allow employees to take money out of the plan when they:
The employee will have to pay taxes on any amount of the distribution that was not from designated Roth or after-tax contributions and may have to pay an additional 10% early distribution tax unless an exception to this tax applies.
*Note: Contact your plan administrator
The lesser of:
100% of includible compensation Or $18,000 in 2016 – 2017
Catch-up contributions for those ages 50 and over
$6,000 in 2016 - 2017
*Note: You should always contact your plan administrator before starting this program.