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A 403(b) is the retirement ... Contributions made over and above the IRS elective deferral limits are made on an after- tax basis. Advantages of 403(b) plans.
Employee salary deferrals into a 403(b) plan are made before income tax is paid and allowed to grow tax-deferred until the money is taxed as income when withdrawn from the plan. 403(b) plans are also referred to as a tax-sheltered annuity ( TSA ) although since 1974 they no longer are restricted to an annuity form and participants can also ...
A 403(b) retirement plan is an employer-sponsored plan for employees of public schools and certain 501(c)(3) tax-exempt organizations. ... All contributions made by an employee become vested ...
A 403(b) is an effective vehicle for employees of nonprofit, government and religious organizations to save for retirement, offering tax advantages, potential employer matching contributions and ...
The Small Business Jobs Act of 2010 enabled 457(b) plans to include Roth accounts, which were previously only available only in 401(k) and 403(b) plans. This change took effect January 1, 2011. Contributions to Roth accounts are made on an after-tax basis, but distributions of both principal and earnings are generally tax-free.
In a traditional 401(k) plan, introduced by Congress in 1978, employees contribute pre-tax earnings to their retirement plan, also called "elective deferrals".That is, an employee's elective deferral funds are set aside by the employer in a special account where the funds are allowed to be invested in various options made available in the plan.
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