What is a 403(b)?
As determined by Section 501(C)(3) of the Internal Revenue Code, the 403(b) is a tax deferred retirement plan available to employees of educational institutions and certain non-profit organizations. Contributions and investment earning in a 403(b) grow tax deferred until withdrawal (assumed to by retirement), at which time they are taxed as ordinary income. See IRS Publication 571 for IRS details on the 403(b). >more info
When was the 403(b) established?
The 403(b) was established in 1958 by the federal government to encourage employees in certain tax-exempt organizations to establish retirement savings programs. The name refers to the relevant section in the Internal Revenue Code. >more info
Click here to read about the Advantages of Participating in a Tax-Sheltered Annuity (TSA).
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