Q. Who can participate in a 403(b) plan?
A. The following persons can participate in a 403(b) plan:
- Eligible employees of Code Section 501(c)(3) tax-exempt organizations;
- Eligible employees of public school systems. Code Section 1709b)(1)(A)(ii) defines a public school system as an education organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly conducted. Included in this category are employees of:
1. public schools
2. state colleges
3. universities
- Eligible employees of churches;
- Employees of public school systems organized by Indian tribal governments;
- Ministers employed by Code Section 501(c)(3) organizations;
- Self-employed ministers, treated as employed by a tax-exempt organization that is a qualified employer; and
- Ministers (chaplains) who meet both of the following requirements:
1. They are employed by organizations that are not Code Section 501(c)(3) tax-exempt organizations, and
2. They function as ministers in their day-to-day professional responsibilities with their employers.
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