PRESENTATION OUTLINE
is a U.S. tax-advantaged retirement savings plan available for public education organizations.
Where does the money come from- it comes from a agreed upon salary reduction.
What are the special rules for this plan- it only available to employees of public schools and tax exempt origination.
How much is contributed- The IRS controls the limits on how much you can contribute to a 403(b) plan. As of 2014, the limit on annual elective deferrals is $17,500. The total annual amount that both you and your employer can contribute to your account equals $52,000.
When does the money come out of the plan- In addition to loans and hardship distributions, a 403(b) plan may allow employees to take money out of the plan when they
reach age 59½;
have a severance from employment;
become disabled;
die; or
encounter a financial hardship.
How much comes out- maximum of $17,500 in 2014 if you are younger than 50 years old. If you are 50 or older, you can make an additional catch-up contribution of as much as $5,500, for a total of up to $23,000.