ministry retirement plans

What is a 403(b) Plan?

A 403(b) retirement plan:

  • Is typically established by not-for-profit 501(c)(3) employers, hospitals, self-employed ministers, and public education organizations.

  • Allows eligible employees to make salary reduction contributions into the plan on a pre-tax and/or after-tax (Roth) basis. 

If the contributions are pre-tax, earnings within a 403(b) plan accrue on a tax-deferred basis. If they are after-tax (Roth), earnings within a 403(b) plan accrue on a tax-free basis. Certain restrictions apply.

Role of the Employer

Employers offering a 403(b) plan may make employer matching or employer basic (non-elective) contributions to the plan on behalf of the eligible employees. 

As a general rule, the administration associated with a 403(b) plan is less involved than the administration of a 401(k) plan. 

Learn more about Church Retirement Plans.


Interested in learning more about 403(b) plans? Call or email Envoy Financial and one of our specialists would be happy to speak with you.