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403b PLan - Advisors

403(b) Plans

A 403(b) plan is a tax-advantaged retirement savings plan specifically designed for employees of non-profit organizations, public schools, and certain tax-exempt entities. This plan allows eligible employees to contribute a portion of their pre-tax or after-tax earnings toward their retirement, helping them build long-term financial security.


Similar to a 401(k) plan, a 403(b) offers tax-deferred growth, meaning employees do not pay taxes on contributions or investment earnings until they withdraw funds during retirement.

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Contribution Limits for 403b Plans

Employee Contributions (Salary Deferral)

Employees can contribute up to $23,500 to a 403(b) plan in 2025 if they are under age 50. Those aged 50 or older can make an additional $7,500 catch-up contribution, increasing their total allowable contribution to $31,000. Additionally, under the SECURE 2.0 Act, employees aged 60 to 63 can contribute up to $34,750, allowing for higher retirement savings during these years.

Employer Contributions (Profit Sharing & Match)

Employers can contribute to a 403(b) plan through profit sharing and matching contributions, with a maximum limit of $70,000 or 100% of the employee's compensation, whichever is lower.

Total Contribution Limit

The total combined contributions from both the employer and employee cannot exceed $70,000 in 2025.

Common questions about 403(b) plans


Have a question? Contact us.


  • Who can participate in a 403(b) plan?

    403(b) plans are available to employees of the following organizations:


    • Non-profit hospitals and health care organizations
    • 501(c)(3) charitable organizations and foundations
    • Scientific and research non-profit organizations
    • Churches and religious organizations
    • Non-profit educational institutions, including private schools, colleges, and public schools

  • What are the tax benefits of a traditional 403(b) plan?

    • Contributions are made pre-tax, reducing your taxable income.
    • Earnings grow tax-deferred.
    • Taxes are paid on distributions taken in retirement as ordinary income.

    To learn more about tax considerations for 403(b) distributions, visit our Tax Planning Section.

  • How does a Roth 403(b) differ from a traditional 403(b)?

    • Contributions to a Roth 403(b) are made after-tax and are not tax-deductible.
    • Earnings may grow tax-free, and qualified withdrawals can be taken tax-free in retirement.
    • Contribution limits for a Roth 403(b) are the same as those for a traditional 403(b).

    For more details on 403(b) withdrawals and distributions, see our Tax Planning Section.

  • Who is eligible to contribute to a 403(b) plan?

    Eligibility requirements, such as age and length of employment, are determined by the plan administrator and employer when the plan is set up.


    Employers can modify these eligibility rules by updating the 403(b) adoption agreement.

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