403(b) Plans: What Schools and Nonprofits Need to Know
Published February 20, 2026 by NBS Team
403(b) plans are tax-advantaged retirement savings vehicles designed specifically for employees of tax-exempt organizations, public schools, and certain ministers.
ERISA vs Non-ERISA
School district 403(b) plans may be exempt from ERISA if they meet certain conditions, while most nonprofit 403(b) plans are subject to ERISA requirements. Understanding this distinction is critical for compliance.
Universal Availability
Unlike 401(k) plans, 403(b) plans must satisfy universal availability — meaning nearly all employees must be given the opportunity to participate.
How NBS Helps
NBS specializes in 403(b) administration for schools, hospitals, and nonprofits. We handle plan documents, compliance testing, Form 5500 preparation, and coordination with multiple investment providers.