Continuing to serve you in a thoughtful way.

Throughout the challenges of recent months, we’ve continued to safely serve investors’ needs. As we gradually reopen our offices to in-person appointments, our approach will be thoughtful and individualized to each location. Learn More

Hurricane Sally

If your Edward Jones branch is temporarily closed due to Hurricane Sally and you need assistance, please call Client Relations at 1-800-511-5768 (Monday - Friday, 7 a.m. - 7 p.m. CT).

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.

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