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403(b) plans are retirement savings plans that can only be offered by organizations exempt from federal income tax such as:
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.
This information is for educational purposes only. Edward Jones, its employees and financial advisors cannot provide tax or legal advice.