9.6.2 Tax-Sheltered Annuities (403(b) Plans)
403(b) plans are similar to 401(k) plans except for the fact that they are designated for nonprofit organizations, such as any of the following.
- Charitable organizations
- Educational organizations
- Religious organizations
- Public school teacher organizations
- Other 501(c)(3) organizations
The maximum annual salary reduction for an employee under a 403(b) plan is the same as that for a 401(k) plan ($17,000 in 2012).
