403(b) Plans for Non-Profits
403(b) plans are retirement plans designed specifically for employees of nonprofit organizations, public schools, and certain tax-exempt institutions. They are commonly used by educators, healthcare workers at nonprofit hospitals, and staff at charitable organizations. For many professionals in the nonprofit sector, the 403(b) plan represents a primary retirement savings vehicle throughout their career.
Who 403(b) Plans Are Typically Suited For
403(b) plans are commonly used by teachers, professors, and school administrators in public and private educational institutions, healthcare professionals working for nonprofit hospitals and medical centers, employees of charitable and religious organizations, and staff at universities, libraries, and other tax-exempt entities. For individuals dedicated to careers in the nonprofit sector, understanding and managing these plans effectively is an important part of long-term financial security.
Common Planning Considerations
403(b) plans in the nonprofit sector often involve limited investment menus, multiple vendors or legacy accounts accumulated over years of service, and contribution decisions that may not be revisited regularly. Many nonprofit employees also face unique planning challenges, such as lower compensation relative to the private sector and limited employer matching contributions, which makes thoughtful plan management even more important.
How We Support Clients
Our role includes helping clients understand their existing 403(b) plan options, reviewing how the plan fits into their overall retirement savings, and assisting with investment selection and allocation decisions within the plan. We also coordinate with other retirement accounts the client may have, help consolidate legacy accounts where appropriate, and support clients in staying organized as their career in the nonprofit sector evolves.
Coordination with Broader Planning
403(b) plans are often one part of a larger retirement picture for nonprofit professionals. Decisions are made with awareness of other savings vehicles, pension benefits where applicable, and income sources unique to the nonprofit sector. Coordination helps clients make informed, consistent decisions over time and ensures their retirement strategy reflects both their values and their financial goals.
