Are 403(b) Contributions Tax Deductible?

Doing good for others can be hard work. Thankfully, employees of various non-profit organizations, such as schools and other tax-exempt organizations, can benefit from enrolling in a 403(b) plan, officially known as a tax-deferred annuity. Get every deduction you deserve. With TurboTax Deluxe, we’ll search over 350 tax deductions and […]

Doing good for others can be hard work. Thankfully, employees of various non-profit organizations, such as schools and other tax-exempt organizations, can benefit from enrolling in a 403(b) plan, officially known as a tax-deferred annuity.

Get every deduction you deserve. With TurboTax Deluxe, we’ll search over 350 tax deductions and credits so you get your maximum refund, guaranteed.

A 403(b) plan is a type of tax-deferred retirement plan that is similar to the 401(k) plans offered by many employers. Most contributions to a 403(b) plan are tax-deductible. The IRS regulates the operation of 403(b) plans, which must conform to certain contribution and participation rules in order to maintain tax-deferred status.

403(b) characteristics

Generally speaking, only your employer can make contributions to your 403(b) account. As with a 401(k) plan, if you participate in a 403(b) plan your employer will take money out of your paycheck before you receive it and deposit it into your 403(b) plan account. This is known as an elective deferral.

Source Article

Next Post

Mastercard, Ingo Partner On Instant Payments

Wed Nov 18 , 2020
Share Tweet Share Share Share Print Email When consumers are offered the option of receiving instant payment, they tend to accept it gladly. Research shows that 90 percent of consumers think getting paid faster is better than getting paid more slowly. But most of the time, they simply aren’t getting the […]