Erisa Rules For 403b In Salt Lake
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FAQ
Simply stated, 403(b)(9) plans are for churches, or those with 501(c)(3) church status, while 403(b) and 403b(7) plans are for everyone else.
This means that each employee will vest, or own, a certain percentage of their account in the plan each year. An employee who is 100% vested in his or her account balance owns 100% of it and the employer cannot forfeit, or take it back, for any reason.
Sub section 403(b)(1) describes annuity contracts that may be made available to employees under a Section 403(b) plan. Sub section 403(b)(7) describes custodial accounts (mutual funds) that may be made available to employees under a Section 403(b) plan.
403(b) plans and 401(k) plans are very similar but with one key difference: whom they're offered to. While 401(k) plans are primarily offered to employees in for-profit companies, 403(b) plans are offered to not-for-profit organizations and government employees.
The two types of 403(b) plans include: Traditional 403(b) plan: Employees defer a portion of their paychecks to the account before federal or state income tax deductions. Roth 403(b) plan: Employees make deferrals to the designated Roth account after tax deductions.
Sub section 403(b)(7) describes custodial accounts (mutual funds) that may be made available to employees under a Section 403(b) plan. 403(b) Roth. The Section of the Internal Revenue Code allowing the after tax of certain amounts of compensation for employees of Eligible Employers.
For 2025, the 403(b) contribution limit is $23,500 for employee contributions, and $70,000 for the combined employee and employer contributions. If you're age 50 to 59 or 64 and older, you're eligible for an additional $7,500 in catch-up contributions, raising your employee contribution limit to $31,000.
Equitable has been the #1 provider of K–12 403(b) plans for 10 consecutive years. We've been working with educators for over 165 years to help create strong financial foundations. We have one-of-a-kind financial products designed to meet the unique needs of educators.
