403(b)/Tax Sheltered Annunities

A 403(b) plan is a retirement plan for certain employees of tax-exempt organizations:  schools, government organizations and churches.  Again, 403(b) plans provide an attractive benefit that appeals to high quality employees. 

A 403(b) plan is funded primarily with employee contributions.  Contributions are tax deferred and ma-y be excluded from an individual's gross income until withdrawn.  Employees make contributions through payroll deductions which reduce their reportable earned income.  For 2010 employees may contribute 100% of compensation or $16,500 whichever is less in regular contributions.  The IRS refers to these as elective deferrals.  Employers may also contribute to the plan on a fixed or discretionary basis.  An additional $5,500 Catch-Up Contribution is allowed for workers age 50 and older.

Corporate Benefit Plans helps organizations to design, implement and administer these types of plans.