In 2017 TAG Resources announced the addition to the TAG Retirement Program of the 403(b) Retirement Solution as an expansion to support the tax-deferred retirement savings offered to employees of nonprofit or 501 (c)(3) organizations, including public schools, hospitals, museums, churches and charitable organizations.
The addition of the 403(b) Retirement Solution compliments the Fiduciary Liability Services offered by TAG Resources since 2004 when TAG began offering 3(16) services to the 401(k) industry of tax-deferred retirement savings accounts.
There are distinct differences in the two types of tax-deferred retirement savings plans that has brought additional training and education for the staff at TAG Resources. Under the current code, public employers do not have to offer 401(k) plans to their employees, however, all full-time nonprofit employees are eligible to participate in a 403(b) plan.
Unlike a 401(k), a 403(b) plan could also be known as a tax-sheltered annuity or TSA plan. That’s because some 403(b) plans invested in annuity contracts. Before the mid-1970s, all 403(b) plans invested in annuities. Today, many 403(b) plans offer participants the option to invest in mutual funds through custodial accounts, just like you would find in a 401(k) plan. Some 403(b) plans offer a combination of mutual funds and annuities.
There are also very similar advantages of both types of retirement programs. The main one being tax-deferred contributions out of the employee’s paycheck. Employers in both sectors can elect to match contributions to both types of retirement plans. The contribution limits are the same for both and the penalty for early withdrawals are the same, as well.
TAG Resources, since 2004, has built a robust system to assess, validate, and authenticate payroll contributions, matching employer contributions, eligibility requirements, loan and hardship withdrawals, among other things. In keeping with the corporate ideals of TAG Resources, the addition of the 403(b) Retirement Solution is built on our people and our experience, the leading-edge technology TAG has developed, a strong commitment to fiscal integrity and compliance, and the ability to bring peach of mind to our clients.