Site Logo Retirement Dictionary Financial Advice Retirement Advice

Save time with our cheat sheets, fact sheets, checklists & books!

Get the cheatsheets!

February 15, 2009

Safe Harbor 403(b) Plan

Learn More

Print

Definition

Nongovermental 403(b) plans that make contributions in accordance with a safe-harbor formula, resulting in the plan not being subject to the ACP nondiscrimination testing. Contributions may be made under one of the following formulas:

1. A basic matching formula,

2. An enhanced matching formula, or

3. A nonelective contribution formula

Referring Cite

IRC § 403(b)(12)(A), IRS notice 89-23,

Additional Helpful Information

Contributions to safe-harbor 403(b) plans are immediately 100% vested

Related Articles Tutorial or Other Content

More

Keep Learning

10-Year Rule

The 10-year rule is a distribution rule that applies to certain beneficiaries who inherit an IRA or employer-sponsored retirement plan account. Under the rule, the

Still-Working Exception

The still-working exception is a rule that may allow a participant in an employer-sponsored retirement plan to delay required minimum distributions (RMDs) beyond the participant’s

Correction Window for RMD Shortfall

RMD Correction window The correction window is the period during which a missed required minimum distribution (RMD) can be corrected in a way that may

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Be among the first to know when

IRA Rules
Change