Mastering 403(b) Plans: A Practical Guide for Employers
Offering a competitive retirement package isn't just about benefits; it's about showing a long-term commitment to your team. Here's how 403(b) plans can strengthen your organization with benefits that work for your workforce.
Growing non-profit organizations need efficient HR solutions and benefits that can scale with their needs and help maintain a competitive edge.
By including a 403(b) plan as part of an overall benefits package, employers can enhance their overall compensation package, strengthen their position as an employer of choice and provide employees with a valuable tool for building retirement security.
Retirement benefits shouldn't be complicated
A 403(b) plan is a powerful retirement savings vehicle. This type of plan is typically offered by educational institutions, churches and charitable entities that want to demonstrate their commitment to employees' long-term financial well-being through a comprehensive retirement plan. By choosing to implement a 403(b) plan, the mutual employer/employee benefits can contribute to a stronger, more stable organization.
403(b) plans function similarly to 401(k) plans, allowing employees to contribute pre-tax dollars from their paychecks. In turn, this reduces their current taxable income as they build a retirement savings that grows tax-deferred until withdrawal. 403(b) plans can also provide for after-tax Roth contributions, which could provide for tax-free retirement distributions.
As their investments grow over time, plan participants have the potential to accumulate more substantial retirement savings compared to non-retirement plan investment solutions. And with higher annual contribution limits than traditional IRAs (currently $23,500 for employees under age 50), participants may have more room to save as they approach retirement page.
Like any retirement plan, plan sponsors have critical legal and operational responsibilities to maintain their 403(b) plan. But aligning with a reputable retirement plan administrator, plan sponsors don't have to go it alone.
Introducing ADP 403(b) Premier
A well-managed 403(b) plan can be a cornerstone of your employee benefits package, helping your organization fulfill its mission while supporting employees' retirement security. An ADP 403(b) Premier plan offers:
- A highly skilled and dedicated service team
- The ability to maintain investment continuity and design a best-fit fund lineup
- Intuitive dashboards and automated processes
- Data-powered insights and analytics, to aid better retirement plan decisions
- Comprehensive integration and continuous data sharing and updating between ADP payroll and the plan's recordkeeping systems
Learn more about ADP's innovative retirement solutions, including ADP 403(b) Premier.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.
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