The following employees are eligible to participate in a 403(b) plan: Employees of tax-exempt organizations established under IRC Section 501(c)(3). Employees of public school systems who are involved in the day-to-day operations of a school. Employees of cooperative hospital service organizations. Civilian faculty and staff of the Uniformed Services University of the Health Sciences (USUHS). Employees of public school systems organized by Indian tribal governments. Certain ministers if they are: Ministers employed by Section 501(c)(3) organizations. Self-employed ministers. A self-employed minister is treated as employed by a tax-exempt organization that is a qualified employer. Ministers (chaplains) who meet both of the following requirements. They are employed by organizations that are not Section 501(c)(3) organizations. They function as ministers in their day-to-day professional responsibilities with their employers. Universal availability rule The "universal availability rule" means that if an employer permits one employee to defer salary into a 403(b) plan, the employer must extend this offer to all employees of the organization. The employer may exclude certain employees from the plan: Employees who will contribute $200 or less annually Those employees who participate in a 401(k) or 457(b) plan or in another 403(b) plan of the employer Nonresident aliens Employees who normally work less than 20 hours per week Students performing services described in IRC Section 3121(b)(10) Additional resources Contribution limits for 403(b) plans Saving for Retirement - contributions, taking withdrawals and loans, automatic enrollment 403(b) plans home page Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations (PDF version)
