Skip to main content

You are here

Advertisement


Practice Management

Participation 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.
  • Certain ministers, including:
  1. Ministers employed by section 501(c)(3) organizations.
  2. Self-employed ministers. A self-employed minister is treated as employed by a tax-exempt organization that is a qualified employer.
  3. Ministers (chaplains) who meet both of the following requirements: (a) They are employed by organizations that aren’t section 501(c)(3) organizations, and (b) They function as ministers in their day-to-day professional responsibilities with their employers.