Wealth &
Protection Planning



A 403(b) retirement plan is designed for employees of public schools, churches, and certain non-profit organizations.  It allows employees to make pretax salary deferrals of up to $18,500 (2018), $24,500 (if age 50 or older with $6,000 catch-up contribution), or 100% of compensation, whichever is less. 


This plan allows employees to save for retirement tax-deferred while reducing their taxable income.  If the plan allows for Roth contributions, employees can designate part or all of their salary deferrals as after-tax Roth contributions. 

  • Tax Advantages - Employees can defer up to $18,500 (2018), $24,500 (if age 50 or older) of salary per year.  For certain employees, there may be other available options for catch-up contributions. 
  • Contributions - Some employers may choose to make contributions to their employees' accounts.  
  • Roth Contributions - If the plan offers the Roth option in a 403(b), employees can designate part or all of their 403(b) contribution as Roth after-tax dollars.  If certain requirements are met, the Roth distributions from an employee's 403(b) account may be tax-free. 
    Roth 403(b) contributions are like a Roth IRA with a couple key differences.  First, the dollar contribution limit is much higher than the Roth IRA.  Second, employees may not be able to contribute to a Roth IRA if their income is above a certain limit.  However, there are no income limits to contribute to a Roth 403(b). 
Additional Information

Public schools and colleges may offer both a 403(b) and a 457(b) plan. 

Contact a STRIVE Wealth Advisor for more information about 403(b) plans. 

Contact Us Today

privacy policy