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:
- Ministers employed by section 501(c)(3) organizations.
- Self-employed ministers. A self-employed minister is treated as employed by a tax-exempt organization that is a qualified employer.
- 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.
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