403(b) Plans

• Hospitals and health care organizations
• Charitable foundations
• Scientific and research organizations
• Churches and other religious organizations
• Educational institutions

There are two general types of 403(b) plans – tax sheltered annuities (TSAs) issued by an insurer, and custodial accounts, invested exclusively in mutual funds. Either type of 403(b) plan allows participants to make pretax contributions to a separate retirement annuity or custodial account set up in their individual names. Earnings in these accounts grow tax-deferred.

Frequently Asked Questions

Can we answer your question here? ------------------------------------ What are the contribution limits? Who is considered an "eligible" employee? Who is required to make contributions each year? What is considered “compensation” for a 403(b) plan? Can I set up a vesting schedule? Can employees take money out of the plan at any time? When must participants begin taking distributions? Are employer contributions reported as taxable income? How are salary deferrals treated for tax purposes? What is a Roth 403(b) account?

Any tax or legal information in this website is merely a summary of our understanding and interpretations of some of the current income tax regulations and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation. Wells Fargo Funds Management, LLC, Wells Fargo Funds Distributor, LLC, nor any of their representatives may give legal or tax advice.