Posted on: 22nd Jun, 2005 04:11 am
There are a number of ways by which you can make money. But your expenses hardly allow to save a sufficient amount for a contented retired life. If you really feel the need to increase your savings, then give a thought to the 403(b) Retirement Plan.
Who sponsors the 403(b) Plan?
403(b) plan is sponsored by non-profit organizations which act like fiduciary. The employer establishes the plan and selects the plan investments
Features:
Even when you have left your employer,you can still invest in a number of ways. You can also ask for loans from your plan account. In general the conditions and benefits of the 403(b) Plan are similar to those of the 401(k) Plan except the concept of Lifetime Catch-Up.
What is Lifetime Catch-Up?
This provision is available to employees completing 15 years of service. It allows participants to contribute up to $3,000 apart from the usual contribution limit. A participant must have contributed an average of less than $5000 a year to the plan to qualify for the Lifetime Catch-Up. The maximum limit for the Lifetime Catch-Up contribution is $15,000.
The 403(b) plan is highly popular. It allows you to contribute in a number of ways towards your retirement. So if you an employer who wishes to attract the best talent, you can include the plan in the employee benefit package.
Related Article:
Related Forum Discussion:
Who sponsors the 403(b) Plan?
403(b) plan is sponsored by non-profit organizations which act like fiduciary. The employer establishes the plan and selects the plan investments
Features:
Even when you have left your employer,you can still invest in a number of ways. You can also ask for loans from your plan account. In general the conditions and benefits of the 403(b) Plan are similar to those of the 401(k) Plan except the concept of Lifetime Catch-Up.
What is Lifetime Catch-Up?
This provision is available to employees completing 15 years of service. It allows participants to contribute up to $3,000 apart from the usual contribution limit. A participant must have contributed an average of less than $5000 a year to the plan to qualify for the Lifetime Catch-Up. The maximum limit for the Lifetime Catch-Up contribution is $15,000.
The 403(b) plan is highly popular. It allows you to contribute in a number of ways towards your retirement. So if you an employer who wishes to attract the best talent, you can include the plan in the employee benefit package.
Related Article:
Related Forum Discussion:
I took out 32,000 from my 403b plan in 2009 at 591/2 years old. At that time, federal income tax was deducted from this amount before a check was cut.
Now on my federal return it is reported as income along with my yearly income from my job. Am I paying for federal income tax twice on the 32,000 I took out as "cash distribution"
Thanks in advance for your reply.
th
Now on my federal return it is reported as income along with my yearly income from my job. Am I paying for federal income tax twice on the 32,000 I took out as "cash distribution"
Thanks in advance for your reply.
th