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 Contributions1 | Yes—taken from your paycheck before taxes. Make changes through your employer at any time. | Yes—taken from your paycheck after taxes. Make changes through your employer at any time. |
Employee Annual Contribution Limit2 | $23,500 | $23,500 |
Employee Catch-Up Contributions2 | $7,500 (50 – 59 and 64+) $11,250 (60 – 63) | $7,500 (50 – 59 and 64+) $11,250 (Age 60 – 63) |
Employer Contribution Limit2 | $70,000 (or 100% of the participant’s taxable salary, whichever is less) | Not applicable |
Maximum Employer + Employee Annual Contributions | $70,000 (Under 50) $77,500 (50 – 59 and 64+)3$81,250 (60 – 63)3Or, regardless of age, 100% of the participant’s taxable salary, whichever is less. | Not applicable |
Withdrawals | Contributions and earnings taxable upon withdrawal; 10% penalty before 59.5.4 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 72 or age 73 for participants born in 1951 or later) | No (unless a retiree reaches age 73 in 2023) |
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 |
- Employee contributions, known as elective deferrals, can only be made to the RPB 403(b) plan and cannot exceed IRS limits. Employer contributions more than the annual IRS limit will automatically go into the participant’s account in the Rabbi Trust plan.
- 2025 IRS Contribution Limit
- To reach this contribution limit, a participant must first maximize their employee contributions including the additional catch-up amount.
- Penalties are waived under qualifying emergency circumstances.
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.