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403(b) Plans

403(b) plans are retirement savings plans that can only be offered by organizations exempt from federal income tax such as:

  • Public schools including colleges and universities
  • Nonprofit hospital and health care agencies
  • Charities
  • Religious organizations

403(b) Plan Contribution features

  • Employees can make pretax salary deferrals of up to $19,500 (for 2021)
  • If you're 50 or older, you can defer up to $26,000 (with a $6,500 catch-up contribution) or 100% of compensation, whichever is less.
  • Some employers choose to make contributions to their employees' accounts.


  • In addition to pretax dollars, some plans allow employees to make after-tax deferrals. This is commonly called a Roth option. So you may be able to take advantage of both options within your 403(b) plan. 
  • If the plan allows for Roth contributions, employees can designate part or all of their salary deferrals as after-tax Roth contributions.

Employees who participate in a 403(b) can defer part of their salary. Deferrals are subject to FICA and FUTA but not federal income tax; contributions have the potential to grow tax deferred. In addition, Roth contributions are after-tax but may be distributed tax-free.

How we can help

Your financial advisor can provide information about the types of retirement plans available.

Important information:

This information is for educational purposes only. Edward Jones, its employees and financial advisors cannot provide tax or legal advice.

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