This retirement plan is used for government, charity, and non-profit organizations. In this plan, pre-tax contributions are made by employees and any employer contributions are tax deductible.
Contribution Limits For Employers: 100% of participant's compensation or $46,000 and the Exclusion Allowance
Contribution Limits For Employees: $15,500
Catch up Contributions for Employees with > 15 years of Service:
$5,000 $15,000 minus amounts previously excluded from gross income under the "catch up provision" $5,000 X Years Working For Employer - Elective Deferrals
Age Limits: Must take RMD by April 1st of achieving age 70.5 or after retirement, whichever is longer.
Qualified Exceptions for Pre-Mature Distribution include: Death, disability, life expectancy formula, separation from service after age 55, hardship, court order, and medical bills greater that 7.5% of Adjusted Gross Income.
Loans are allowed on 403(b) plans.