retirement planners & administrator​

403(b) Plan

If you are a non profit organization then you have probably heard of or sponsor a 403(b) plan.  It is like a cousin to the 401(k) plan in terms of the limits, compliance and administrative work.

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Need a 403(b)? We can help!

At ERA Admin, we specialize in providing comprehensive and reliable solutions for 403(b) retirement plans. Our expertise ensures that plan participants and sponsors have access to clear guidance, streamlined management tools, and exceptional support. Whether you’re navigating withdrawal options, rollovers, or compliance requirements, ERA is here to help you make informed decisions with confidence. Trust ERA to simplify your 403(b) plan administration and empower your financial future. Learn more about our tailored services by contacting us today!

retirement planners & administrator​

Frequently Asked Questions

What is a 403(b) plan?

A 403(b) plan is a retirement savings program primarily designed for employees of public schools, tax-exempt organizations, and certain religious institutions. It allows participants to defer a portion of their salary into the plan, which is often invested in annuities or mutual funds. The goal is to provide long-term savings and tax advantages to help individuals prepare for retirement.

Is a 403(b) a qualified retirement plan?

Yes, a 403(b) is considered a qualified retirement plan. It is defined under the Internal Revenue Code Section 403(b) and meets the requirements set by the IRS for tax-advantaged plans. Contributions to a 403(b) plan may be made on a pre-tax or Roth (after-tax) basis, and the plan must comply with certain rules regarding contributions, nondiscrimination, and distributions.

What is a Roth 403(b) plan?

A Roth 403(b) plan is a variation of the traditional 403(b) that allows you to make after-tax contributions. Unlike contributions to a traditional 403(b), Roth contributions do not reduce your taxable income for the year they are made. However, the great advantage of a Roth 403(b) is that qualified withdrawals during retirement, including both contributions and earnings, are tax-free, provided certain criteria are met.

Can 403(b) plans be rolled over?

Yes, funds from a 403(b) plan can typically be rolled over into other qualifying retirement accounts, such as a 401(k), another 403(b), or an Individual Retirement Account (IRA). However, specific rules and restrictions apply, and it is advisable to consult with your plan administrator or financial advisor for guidance. Rollovers may also depend on whether the employee is still actively employed with the plan sponsor or has terminated employment.

Can I withdraw from a 403(b) while still employed?

Withdrawing from a 403(b) plan while still employed is possible under certain circumstances, such as hardship withdrawals or loans (if the plan allows for them). Additionally, individuals aged 59½ or older may qualify for in-service withdrawals without penalties. However, early withdrawals made before age 59½ may be subject to a 10% penalty and regular income tax unless an exception applies. It is important to check the specific terms of your 403(b) plan to determine your options.