403(b) Plan
Choosing the right way to save for you
RPB offers what is known in the financial world as a 403(b)(9) plan, also called a church plan. That means we provide a defined-contribution retirement plan (like a 401k) to employees of religious institutions—namely qualified Reform Movement synagogues and other organizations. Our plan also includes benefits—the Rabbi Trust and parsonage tax exclusion in retirement.
When you first enroll, you’ll need to make some initial decisions regarding:
- Contributions: Do you want contributions from your paycheck to be made with pre-tax dollars or post-tax dollars (also known as Roth contributions)?
- Beneficiaries: Who do you want to inherit your RPB account when you pass away?
- Investments: Which of the funds that RPB offers do you want to put your retirement savings into—and how much into each?
- Rollovers: Do you have existing retirement accounts that you want to consolidate into your RPB account?
Detailed information for all of these decisions can be found on the links above and throughout this website.
Once you’ve enrolled and have made these decisions, we recommend revisiting your contribution rate, investment allocation, and beneficiary designations at least once a year, or whenever something major changes in your life—like getting married, having a child, or experiencing a death in your family.
And don’t forget that your 403(b) account is portable. This means that if you switch jobs, you have the option to keep your 403(b) account with RPB as long as you like. If you go to another RPB-eligible employer, you can continue to contribute through that employer.
Your 403(b) account at a glance
| Traditional 403(b) Contributions (Pre-Tax) | Roth 403(b) Contributions (Post-Tax) | |
|---|---|---|
Income Restrictions | No | No |
Employer Contributions | Yes | No |
Employee Contributions | Yes—on a pre-tax basis, deferred from salary | Yes—on a post-tax basis, deferred from salary |
Employee Contribution Limit1 | $19,500 +$6,500 if age is 50+ $26,000 total | $19,500 +$6,500 if age is 50+ $26,000 total |
Employer Contribution Limit1 | $57,000 (or 100% of the participant’s taxable salary, whichever is less) | Not applicable |
Combined | Under 50 = $57,000 Over 50 = $63,500 or, regardless of age, 100% of the participant’s taxable salary, whichever is less | Not applicable |
Distributions | Contributions and earnings taxable upon withdrawal; 10% penalty before age 59½. Exceptions apply. | Contributions and earnings tax-free upon withdrawal (as long as 5-year requirement met) |
Required Minimum Distribution | Yes (unless participant is still working after age 70½) | Yes (unless participant is still working after age 70½) |
Tax-free to Heirs | No | Yes, as long as the account was owned for five years from the date it was established. |
Loans | Yes | Yes |
Hardship Withdrawal | Tax and 10% penalty on contributions and earnings | Tax and 10% penalty on contributions and earnings if 5-year requirement has not been met |
- Limit shown is for the 2020 tax reporting year.
At RPB, you’re not locked into IRS limits.
RPB also offers a Rabbi Trust, a way to capture employer contributions that exceed the IRS’s annual limit. All plan participants are eligible—not just rabbis.