A 403(b) plan is available to employees of public schools, churches, and certain nonprofit organizations that qualify as (IRS code 501(c)(3)) organizations. It allows employees to make pretax salary deferrals of up to $16,500(2011), $22,000 (if age 50 or older) or 100% of compensation, whichever is less.
The objective is to allow employees to save for retirement while reducing their taxable income. A 403(b) plan helps the employer attract and retain quality employees.
This plan can be established by employees of organizations that qualify as 501(c)(3) organizations as defined in the IRS code. For-profit organizations are not eligible to establish 403(b) plans.
The employees of Warren Wealth Management do not provide tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.