We're here for you – ready to listen, support and navigate this together.

In the interest of the health and well-being of the communities we serve, our branch offices are not meeting in person with new and existing clients at this time. We will continue to serve you through several virtual options. Learn More

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 2020)
  • 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.

Considerations

  • 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.

Find a Financial Advisor

Find a Financial Advisor

Select a State and then enter a last name

    Explore our retirement resources

    Steps today help you have the freedom to make retirement your own.

    Read more

    Are you ready to retire?

    Adjust your inputs to see the effects on your retirement calculation.

    Use our calculator