Retirement Plan Services
Certain defined contribution plans are only available to certain types of employers. Public school systems, hospitals, and certain 501(c)(3) tax-exempt organizations can establish an ERISA 403(b) plan, also known as a tax sheltered annuity. Although the rules governing an ERISA 403(b) plan are very similar to those governing a 401(k) plan, it’s important to understand the terms of your plan and how to best design it to meet your employees’ needs.
403(b) Plans with Watkins Ross
In an ERISA 403(b) plan, you can elect to allow employees to defer money on a pre-tax or after-tax basis. Similar to a 401(k) plan, participants are subject to a 10% early withdrawal penalty if they withdrawal the funds before reaching age 59.5. Although the annual contribution limits may be the same as in a 401(k) plan, an ERISA 403(b) plan may also allow some participants with at least 15 years of service to contribute additional funds to their plan.
Although many employers in these sectors are familiar with an ERISA 403(b) plan, many aren’t aware of the options available to leverage the plan to meet their goals. At Watkins Ross, we partner with you to clearly define your objectives and ensure you are setting up the ‘right’ retirement savings plan for your business. The Watkins Ross team consults on retirement plan designs, administration and other components for ERISA 403(b) plan.
For additional 403(b) questions please contact
Marianne P. Evans
Defined Contribution Department Manager
Financial & Management Resources
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