Retirement Planning Under Section 403(b)(7)--Advantages and Limitations.
本文比较了第403(b)(7)条款退休计划与IRA的优势，包括更高缴款限额、更广投资选择、更易取款及避免税收罚款，并介绍了资格要求、缴款限制和收益税收。
Abstract The 1981 Economic Recovery Tax Act (ERTA) permits employees to make contributions to an IRA even if they are already enrolled in a retirement plan. However, eligible taxpayers should find a tax-deferral plan made available in the Revenue Act of 1978 more attractive. The Section 403(b)(7) plans are more attractive than IRAs because they permit larger contributors, provide broader investment opportunities, permit easier withdrawal of funds, and eliminate possible tax penalties. This paper initially presents the advantages of the Section 403(b)(7) plans and then discusses the eligibility requirements, the contribution limitations, and the taxation of benefits received from such plans. The contribution limitation alternatives are illustrated with examples and flowcharts.