Participating in a 403(b) Plan

Q. Who can participate in a 403(b) plan?

A. Any eligible employee can participate in a 403(b) plan.

The following employees are eligible to participate in a 403(b) plan.

• Employees of tax-exempt organizations established under section 501(c)(3). These organizations are usually referred to as section 501(c)(3) organizations or simply 501(c)(3) organizations.
• Employees of public school systems who are involved in the day-to-day operations of a school.
• Employees of cooperative hospital service organizations.
• Civilian faculty and staff of the Uniformed Services University of the Health Sciences.
• Employees of public school systems organized by Indian tribal governments who are involved in the day-to-day operations of a school.
• Certain ministers:  
  • Those employed by section 501(c)(3) organizations.
  • Those who are self-employed; a self-employed minister is treated as employed by a tax-exempt organization that is an eligible employer.
  • Ministers (chaplains) who meet both of the following requirements: (1) employment by an organization that is not a Section 501(c)(3) organization; and who function as ministers in their day-to-day professional responsibilities with their employers.