403(b) Plan
403(b) Thrift Plan

Mutual of America's 403(b) Thrift plan is an employer-sponsored retirement savings plan that operates much like the 401(k) plan. The 403(b) Thrift plan is only available to employees of public schools and charities exempt from federal income tax under Internal Revenue Code (IRC) section 501(c)(3) (not-for-profit tax-exempt employers that are not wholly owned by a state or local government) and to church or qualified church-controlled organizations as described in Section 3121(w)(3) of the IRC.


A plan participant's contributions are made through payroll deductions that are allocated to an account established for the participant. Often, but not always, the plan sponsor will contribute a matching amount to encourage employees to take advantage of this savings vehicle and/or a base contribution. Employers may also
choose to add a Designated Roth Contribution Feature to their Thrift plan.


We provide outstanding administrative services for plan sponsors based on the service level selected, which include:

  • Plan document, amendments, restatements and Summary Plan Description/Highlight booklets.
  • Recordkeeping and other administrative services, including those required to comply with 403(b) regulations.
  • Investment related services (subject to plan fiduciary oversight)
  • Employee education, communication and enrollment.

For a complete list of services provided, please contact your local Mutual of America Regional Office.

Advantages for Plan Sponsors
  • Funded from dollars paid as salary, employer matching contributions, and employer nonelective contributions.
  • Helps recruit and keep quality employees.
  • Helps employees build retirement security.
Advantages for Employees
  • Save through easy payroll deduction.
  • Choose the amount they want to save, subject to applicable IRS limits.
  • Change the amount saved to meet current needs.
  • Reduce their taxable income.
  • Defer taxes on the amount saved and its earnings until the participant receives benefits from the
    retirement plan.
Designated 403(b) Roth Contribution Feature
  • Enhances your employees' retirement planning objectives by providing them with an additional option to make Designated Roth Contributions on an "after-tax" basis under your retirement plan.
  • Provides your employees with an opportunity to receive federal-income-tax-free distributions, including investment earnings from your retirement plan, if qualified distributions are made. Designated Roth Contributions and investment earnings on them received after a five-taxable-year period that begins on January 1 of the year in which the initial Designated Roth Contribution is made under a plan, provided that:
    • The employee is age 59½ or older, or
    • The employee has become disabled or has died.

A distribution of Designated Roth Contributions and investment earnings on them that does not meet the above requirements for a qualified distribution is income taxable as ordinary income to the extent attributable to investment earnings on Designated Roth Contributions. Such investment earnings may also be subject to a 10% premature distribution federal income tax penalty. Please note, however, that Designated Roth Contributions are withdrawn on a pro rata basis.

As noted earlier, qualified distributions from Designated Roth 401(k) and Roth 403(b) accounts are not subject to federal income tax.

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