403(b)

{{Short description|Type of retirement/pension plan in the United States}}

{{Short description|Type of retirement/pension plan in the United States}}

{{Use American English|date=April 2026}}

{{Use mdy dates|date=April 2026}}

In the [[United States]], a '''403(b)''' plan is a U.S. [[tax]]-advantaged [[retirement]] savings plan available for [[public education]] [[organization]]s, some [[Non-profit organization|non-profit]] employers (only [[Internal Revenue Code]] [[501(c)(3)]] organizations), cooperative hospital service organizations, and [[self-employed]] [[minister of religion|ministers]] in the [[United States]].{{Cite web|url=https://www.irs.gov/publications/p571/ch01.html|title=403(b) Plan Basics|website=irs.gov|publisher=Internal Revenue Service|access-date=2016-09-02}} It has tax treatment similar to a [[401(k)]] plan, especially after the [[Economic Growth and Tax Relief Reconciliation Act of 2001]].{{Cite web|url=https://money.cnn.com/retirement/guide/401k_403bplans.moneymag/index2.htm|title=How is a 403(b) different from a 401(k)?|website=cnn.com|access-date=2016-09-02}} Both plans also require that distributions start at age 72 (according to the rules updated in 2020), known as [[Required minimum distribution|Required Minimum Distributions (RMDs)]].{{Cite web |last= |title=401(k) and 403(b) Plans: What's the Difference? |url=https://www.investopedia.com/ask/answers/100314/what-difference-between-401k-plan-and-403b-plan.asp |access-date=2023-05-18 |website=Investopedia |language=en}} Distributions are typically taxed as ordinary income.

In the [[United States]], a '''403(b)''' plan is a U.S. [[tax]]-advantaged [[retirement]] savings plan available for [[public education]] [[organization]]s, some [[Non-profit organization|non-profit]] employers (only [[Internal Revenue Code]] [[501(c)(3)]] organizations), cooperative hospital service organizations, and [[self-employed]] [[minister of religion|ministers]] in the [[United States]].{{Cite web|url=https://www.irs.gov/publications/p571/ch01.html|title=403(b) Plan Basics|website=irs.gov|publisher=Internal Revenue Service|access-date=2016-09-02}} It has tax treatment similar to a [[401(k)]] plan, especially after the [[Economic Growth and Tax Relief Reconciliation Act of 2001]].{{Cite web|url=https://money.cnn.com/retirement/guide/401k_403bplans.moneymag/index2.htm|title=How is a 403(b) different from a 401(k)?|website=cnn.com|access-date=2016-09-02}} Both plans also require that distributions start at age 72 (according to the rules updated in 2020), known as [[Required minimum distribution|Required Minimum Distributions (RMDs)]].{{Cite web |last= |title=401(k) and 403(b) Plans: What's the Difference? |url=https://www.investopedia.com/ask/answers/100314/what-difference-between-401k-plan-and-403b-plan.asp |access-date=2023-05-18 |website=Investopedia |language=en}} Distributions are typically taxed as ordinary income.