403(b) Plans

You work to make a difference in the lives of others – and that requires personal attention. At Edward Jones, we also value one-on-one interaction and work hard to provide the personal support you need to save and plan for retirement. A 403(b) plan may be a foundation in this important goal for you and your employees.

403(b) plans are retirement savings plans that are similar to 401(k) plans and have many of the same benefits. The main difference is that 403(b) plans 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

Contribution features

  • Employees can make pretax salary deferrals of up to $19,000 (for 2019)
  • If you're 50 or older, you can defer up to $25,000 (with a $6,000 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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