403(B)
403b Explained
403b or Tax-Sheltered Annuities (TSA) are retirement accounts provided by public schools, nonprofits and certain 501(c)(3) qualified charities. The plan allows for employee and potentially employer contributions on a Traditional and Roth basis.
Rolling it Over?
403b or TSAs can be rolled over into a similarly structured IRA (Pre/Post-tax) after leaving the employer, upon retirement or over the age 59 1/2.
403b Contributions
403b contributions are similar to 401ks where the base max contribution limit is $22,500, but 403b plans is more complex when it comes to catch-up contribution limits.
Over the age of 50, the employee can contribute a max of $30,000.
With more than 15 years of service the employee can qualify for additional contributions. Please consult a tax professional for more information.