FAQs
What is a 403b plan?
A 403b plan is a salary reduction retirement plan. Once an employer adopts a 403b plan, eligible employees may choose to make contributions as well as possibly receive contributions made by the employer on their behalf.
How do I contribute to my 403b plan?
Complete the Enrollment Form and the amount is automatically deducted from your paycheck.
When are contributions deposited into my 403b plan?
No more than 15 days after being withdrawn from your paychecks.
Do I pay taxes on 403b plan contributions?
403b plan contributions and any earnings on your contributions are not subject to income taxes until you withdraw the funds (assuming it is a non-ROTH contribution). Participation in a 403b plan does not reduce your Social Security benefits.
May I make changes to my contribution amount during the year?
You may stop or begin your salary deferral for 403b plan contributions anytime with advance notice (subject to Employer Plan Document - contact your plan administrator).
How much may I contribute to my 403b plan each year?
| Year | Employee deferral contribution limit | “Catch-up” contributions for workers 50+ | Total Contribution Limit (with catch-up) |
| 2008 | $15,500 | $5,000 | $20,500 |
May I withdraw money from my 403b plan (subject to Employer Plan Document - contact your plan administrator)?
Your 403b plan contributions are meant for retirement, but you can withdraw for:
- Loans (minimum of $1,000)
- Hardship distributions (such as death, disability, etc.)
- Permissive Service Credits
Can I roll/transfer other retirement accounts into my 403b?
Yes, this feature is allowed to consolidate various accounts into one (subject to Employer Plan Document - contact your plan administrator).
How often will I receive information about my 403b plan?
You’ll automatically receive statements annually and have access to your account online day or night. You are able to print a statement on demand for any period you select.