Who May Participate in a 403(b) Plan?

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Who May Participate in a 403(b) Plan?

Employees of non-profit organizations, such as hospitals, museums, public foundations, churches, research organizations, and local governments are eligible for participation in 403(b) plans. Part-time employees may participate in all qualified plans unless they are expressly prohibited because of individual plan requirements. In addition, employers may establish eligibility guidelines for different classes of employees.

New legislation for 2025 requires businesses adopting new 403(b) plans to automatically enroll eligible employees, starting at a contribution rate of at least 3%.