403(b)

A 403(b) plan is a tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only US tax code 501(c)(3) organizations), and self-employed ministers in the United States. It has tax treatment similar to that of a 401(k) plan.  Simply put, employee salary deferrals into a 403(b) plan are made before income tax is paid and allowed to grow tax-deferred until the money is taxed as income when withdrawn from the plan. Beginning in 2006, 403(b) and 401(k) plans may also include designated ROTH contributions, i.e., after-tax contributions, which, if certain requirements are met, will allow tax-free withdrawals.  At Bongiovanni Insurance we can provide members of your organization with the knowledge to make the right retirement decisions.  Please call (203) 237-7900.

Please Note: Plan distributions may be subject to tax and 10% penalty if withdrawn before age 59 1/2.  Loans are subject to interest charges and possible fees.  This will reduce the retirement benefit if not paid. 

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