Who can Particpate in a 403(b) Plan?
Any eligible employee can participate in a 403(b) plan.
The following employees are eligible to participate in a 403(b) plan.
- Employees
of tax-exempt organizations established under section 501(c)(3). These
organizations are usually referred to as section 501(c)(3)
organizations or simply 501(c)(3) organizations.
- Employees
of public school systems who are involved in the day-to-day operations
of a school.
- Employees
of cooperative hospital service organizations.
- Civilian
faculty and staff of the Uniformed Services University of the Health
Sciences.
- Employees
of public school systems organized by Indian tribal governments.
- Certain
ministers
The
following ministers are eligible employees for whom a 403(b) account
can be established.
- Ministers
employed by section 501(c)(3) organizations.
- Self-employed
ministers. A self-employed minister is treated as employed by a
tax-exempt organization that is a qualified employer.
- Ministers
(chaplains) who meet both of the following requirements.
- They
are employed by organizations that are not section 501(c)(3)
organizations.
- They
function as ministers in their day-to-day professional responsibilities
with their employers.
Understand
that the term chaplain can be used to mean
ministers described in the third category in the list above.
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