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 offers the parsonage tax exclusion on distributions for retired clergy.
When you first enroll, you’ll need to make some initial decisions regarding:
- Contributions: Do you want contributions from your paycheck (elective deferrals) to be made with pre-tax dollars or post-tax dollars (also known as Roth contributions)? You can change your elective deferrals at any time during the year through your employer.
- 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 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. Make changes through your employer at any time. | Yes—on a post-tax basis, deferred from salary. Make changes through your employer at any time. |
Employee Contribution Limit1 | $23,000 +$7,500 if age is 50+ $30,500 total | $23,000 +$7,500 if age is 50+ $30,500 total |
Employer Contribution Limit1 | $69,000 (or 100% of the participant’s taxable salary, whichever is less) | Not applicable |
Combined | Under 50 = $69,000 Over 50 = $76,500 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 59.5. Exceptions apply. | Contributions and earnings are tax-free upon withdrawal (as long as you meet the 5-year requirement) |
Required Minimum Distribution | Yes (unless participant is still working after age 73) | No |
Tax-free to Heirs | No | Yes, as long as you owned the account 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 you haven't met the 5-year requirement. |
- Limit shown is for the 2024 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.