Tax-Deferred Annuity Plans (403(b))

Retirement Solutions Designed for Nonprofits & Public Institutions

A Retirement Plan Built for Mission-Driven Organizations

How 403(b) Plans Support Nonprofit Employees

A 403(b) plan—also called a tax-deferred annuity (TDA) plan—is the nonprofit and public-school equivalent of a 401(k), offering employees a convenient, tax-advantaged way to save for retirement. Teachers, healthcare workers, church staff, and nonprofit professionals often rely on 403(b) plans as their primary long-term savings vehicle, making these programs essential for recruitment and retention. Contributions can be made pre-tax or Roth (when available), and assets grow tax-deferred until withdrawal, providing meaningful long-term value. IFG understands the unique regulatory environment around 403(b)s, including legacy annuity contracts, vendor consolidation challenges, and universal availability rules. We help organizations set up cost-effective, compliant plans that support their mission and their people.

Plan Setup, Design & Compliance Support

How IFG Helps Build and Maintain a 403(b) Plan That Works

IFG assists nonprofits and public-sector organizations with everything needed to establish, upgrade, or streamline a 403(b) plan. We help you evaluate and select the right provider—prioritizing low fees, strong service, and investment transparency—while designing eligibility rules, match structures, or non-elective contributions that align with your budget. Our team ensures your plan meets 403(b)-specific regulatory requirements, including universal availability, written plan documents, and ERISA or non-ERISA guidelines depending on your status. Whether you’re starting fresh or consolidating multiple legacy vendors into a single streamlined platform, we handle the technical details so your staff can focus on the mission.

Creating a Meaningful Retirement Benefit for Your Team

Balancing Cost, Participation & Employee Needs

Many nonprofits worry that they can’t afford employer contributions, but even a modest match—or simply offering a well-designed salary deferral program—can dramatically improve staff morale and recruitment. IFG helps you craft contribution formulas that fit your budget, such as partial matches, flat contributions for all employees, or discretionary year-end funding when resources allow. We also guide organizations through features unique to 403(b) plans, like the 15-year service catch-up provision for long-tenured nonprofit employees. By designing a plan that respects financial limitations while still providing meaningful value, we help your organization show employees that their future matters.

Education, Vendor Coordination & Ongoing Plan Management

Support That Strengthens Participation and Compliance

Nonprofit employees often need clear, accessible guidance to feel confident about investing for retirement. IFG provides ongoing workshops, enrollment meetings, and one-on-one support to help employees understand contribution strategies, investment choices, Roth vs. pre-tax features, and the importance of consistent saving. We also navigate administrative complexities: coordinating with vendors, managing contribution limits, supporting Form 5500 filings when applicable, monitoring plan documents, and ensuring required notices are distributed.

Key areas of support include:

  • Vendor Streamlining: Consolidating legacy annuity contracts or multi-vendor arrangements into a clear, manageable structure.

  • Regulatory Alignment: Ensuring universal availability rules and ERISA or church-plan exemptions are properly applied.

  • Participant Experience: Providing tools and guidance that help employees make informed decisions about their retirement savings.

    With IFG managing these elements, your organization can offer a retirement plan that supports both compliance and employee well-being.

Frequently Asked Questions

Answers to Common Questions About 403(b) Plans

A woman in a red sweater is sitting on a chair holding a cup of coffee.

  • What is a 403(b) plan and who is eligible to offer one?

    A 403(b) plan is a tax-advantaged retirement plan available to public schools, churches, and 501(c)(3) nonprofit organizations. It functions similarly to a 401(k), allowing employees to save pre-tax or Roth contributions for long-term retirement needs. These plans historically involved annuity products, but today they often include mutual fund platforms or modern recordkeeping systems. Any eligible nonprofit or public educational institution can sponsor a 403(b) to help its employees save for the future.

  • How does a 403(b) differ from a 401(k) plan?

    Both plans allow pre-tax and Roth contributions, employer matches, and tax-deferred growth, but 403(b)s have unique rules around universal availability and often differ in ERISA status. Many 403(b) plans are exempt from ERISA, simplifying administration compared to 401(k) plans. Certain nonprofit employees with 15+ years of service may qualify for special catch-up contributions not available in 401(k)s. IFG helps organizations understand which rules apply and which structure best supports their workforce.

  • Can a nonprofit afford to offer a retirement plan?

    Absolutely—many organizations start with an employee-funded plan and add employer contributions later as budgets allow. Even modest employer contributions can significantly improve employee morale, recruitment, and retention. IFG helps nonprofits design contribution formulas that are cost-effective but still highly valued by staff. Our goal is to help you provide a meaningful benefit without straining financial resources.

  • How does IFG help keep a 403(b) plan compliant?

    We manage the required written plan documents, ensure universal availability for salary deferrals, and coordinate testing or filings when ERISA applies. Our team tracks regulatory updates affecting 403(b) plans and implements necessary amendments or restatements. We also coordinate with vendors and administrators to ensure operations align with compliance requirements. This proactive oversight reduces risk and ensures your plan remains up-to-date.

  • What kind of education does IFG provide to nonprofit employees?

    We lead enrollment meetings, financial wellness sessions, and personalized consultations to help employees understand how the plan works and how to maximize their savings. Our advisors explain contribution strategies, investment basics, and unique 403(b) features like the 15-year catch-up opportunity. We tailor sessions to the nonprofit environment, recognizing that many staff may be new to investing. By improving employee confidence and understanding, we strengthen participation and long-term outcomes.