Most of us have heard of, and many have participated in, a 401k. It is the plan that allows employees of companies to set aside a portion of their wages in a tax free retirement account. That said, did you know that there is a similar plan for employees of tax-exempt entities?
A 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.I have never understood why more churches do not offer 403b plans for their staff. Do you know of churches that do? If so, do they match a part of the employee contributions like companies do with 401k plans? And do you know if employees tend to contribute or not?