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Get Started401(k) plans allow employees to save for their retirement by contributing a portion of their wages to an individual account. Employers can also contribute to 401(k) plans in the fo… more »
If you manage a non-profit, public education, or cooperative hospital organization, then you might want to use 403(b) plans to help your employees save money for the future. This type of plan is similar to 401(k) plans. A 403(b), however, can only be used by certain types of organizations and self-employed ministers.
There are several advantages of using 403(b) plans. For instance, all contributions made into the plan are tax exempt. Employees, therefore, do not have to pay taxes on the money that they contribute. Instead, the contributions can come directly from their pay checks.
Instead of paying taxes on contributions, a 403(b) plan allows people to pay taxes when they withdraw money. This makes the plan useful for retirement savings.
Since there are a wide variety of details that you will need to understand before you start one of these plans, you might need the help of a professional. You can start learning more about 403(b) advantages and the professionals that work with them by visiting the links that Business.com has listed on the left side of your screen. Spend some time exploring these sites to help ensure that you make a good choice for you, your employees, and your organization.
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