The 403b Plan



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?


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