403(b) Plans

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.


Pre-tax contributions


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:

  • reach age 59½;
  • have a severance from employment;
  • become disabled;
  • die; or
  • encounter a financial hardship.

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


*Note: Contact your plan administrator

Maximum Contribution:

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.

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