403(b) Plans
Designed specifically for hospitals, public schools, churches and other non-profit organizations, 403(b) Plans enable participating employees to make pre-tax contributions that are greater than the limits allowed for IRAs.

While employers are not prohibited from making matching contributions, most choose not to. This enables them to avoid the rigorous nondiscrimination testing and other administrative requirements that are similar to those of a 401(k) Plan. As a result, 403(b) Plans are appealing to organizations with limited financial or administrative resources.

In 403(b) Plans employees can defer as much as 100% of their pay, up to a maximum of $15,500 in 2008, or the annual IRS dollar maximum. If they leave the plan, their funds can be rolled over into another tax deferred account.

To gain a better understanding of 403(b) Plans, as compared to other retirement options, please contact us for a personal consultation.