At Gardner & Associates, PLLC. we are always trying to find the product that best suits the clients need. In some cases, the 403b chassis could very well be that product.
A 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.It has tax treatment similar to a 401(k) plan, especially after the Economic Growth and Tax Relief Reconciliation Act of 2001.
Participants may contribute up to $18,000 for year 2016. In 2015 the limit was also $18,000. In 2014 and 2013 the limit was $17,500. It was $17,000 in 2012.
For those with employer matches or other employer contributions, the limit is $53,000 or 100% of compensation (whichever is less). The participant is still limited to the employee elective deferral limit ($18,000 for 2016). An employer can add up to another $35,000.
Age 50 Catch Up
Participants age 50 and older at any time during the calendar year are permitted to contribute an additional $6,000 in 2016. The age 50 catch up in 2015 was also $6,000. From 2009 to 2014 it was $5,500.