Basically, 403(b) plans are similar to 401(k) plans that are maintained by "for-profit" entities. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary. In this case, their deferred money goes to a 403(b) plan sponsored by their employer. This deferred money generally does not get taxed by the federal government or by most state governments until distributed. This is just as it is with 401(k) plans. If you establish a 403(b) plan, you can have other retirement plans and you may need to file Form 5500.
Contribution Limits:
Employee – $16,500 in 2009, and subject to cost-of-living adjustments in later years, or 100% of includable compensation. If the employee is age 50 or over, a "catch-up" contribution is also allowed. $5,500 in 2009 and subject to cost-of-living adjustments in later years.
Employer/Employee – The lesser of $46,000 in 2009 and subject to cost-of-living adjustments in later years or 100% of includable compensation.
Securities offered through Transamerica Financial Advisors, Inc. A Registered Broker/Dealer and Investment Advisor Member FINRA and SIPC
Kempf & Co 8195 166th Ave NE Suite 100
Redmond, WA 98052
(425)-881-8573
This information is intended for use by residents of OR, WA, CA, CO, NM, TX, IA, FL. Securities related services may not be provided to individuals residing in any state not listed above.