A 403(b) plan is a tax-deferred retirement plan for certain tax-exempt employers, such as non-profit organizations, some hospitals, and public schools and is similar to a 401(k) plan. Contributions can grow tax-deferred until withdrawal at which time the money is taxed as ordinary income. These plans may allow for some type of contribution from the employer, either in the form of a match of the percentage of the amount contributed by the employee or based on a percentage of compensation. It is possible for an employer to utilize both forms of contributions. 403(b) plans are subject to universal availability which briefly means that all employees must be permitted to make salary-deferral contributions.

From a plan administration standpoint, 403(b) plans do not have many of the same technical difficulties that 401(k)s do, such as discrimination testing, especially if the plan is not an ERISA plan. Let us work with you to determine if this plan would best meet your needs.