Retirement Plan Services
403(b) Plans
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
Guide
Brochure
Related Articles
403(b) Plans
Required Minimum Distributions (RMDs)
Understand RMDs: Mandatory withdrawals from retirement accounts explained. Learn deadlines, calculations, exemptions.
Mandatory Roth Catch-Up Contributions – Another Secure Act 2.0 Provision
Explore mandatory Roth catch-up contributions and vital insights for plan sponsors. Prepare for upcoming changes now.
Saver’s Tax Credit
Maximize your retirement savings with the Saver’s Tax Credit. Claim up to $1,000 ($2,000 for couples) on your 2023 tax return. Find out if you qualify!
Long Term Part Time (LTPT) Employees: The Impact to Your Plan Beginning in 2024
Discover the SECURE Act’s impact on plan eligibility and requirements for Long Term Part Time (LTPT) employees. Learn about changes, tracking hours, and employer contributions.
In-Service Distributions from Defined Benefit Plans
The Bipartisan American Miners Act of 2019 allows in-service distributions for retirement plan participants to commence at age 59 ½. However, in a defined benefit plan, to receive in-service lump sum distributions at age 59 ½, the distribution must satisfy certain thresholds. Read on to learn more about defined benefit plan lump sum distribution requirements.
Internal Revenue Service Provides Temporary Relief and Other Guidance on Mid-Year Reductions of Safe Harbor Contributions to 401(k) Plans due to COVID-19
On June 29, 2020, the Internal Revenue Service (the “IRS”) issued Notice 2020-52 that provides temporarily relief to...