Bill Introduced to Allow State Employees to Contribute to 403(b)     Congressman Virgil H. Goode Jr. (R-Virginia) introduced legislation on January 21, 2004 that would allow state workers to contribute to a 403(b) plan. Bill HR 3718 seeks to "amend the Internal Revenue Code (IRC) of 1986 to allow state government employers to contribute to section 403(b) pension plans." These employees currently have access to a 457(b) plan.   The 403(b) plan covers employees of educational institutions and certain non-profit organizations as determined by section 501(c)(3) of the IRC. As state employees teachers often have access to both a 403(b) and a 457(b). For 2004 teachers are able to contribute $13,000 to each plan for a total contribution of $26,000. Teachers eligible for catch-up provisions can contribute even more.   It is believed that this new legislation would allow other state employees to contribute the maximum to both a 457(b) and a 403(b). According to the U.S. Census Bureau as of June 2003 about 18.1 million people were employed by state and local governments. About 4 million of the total were employed by local school districts meaning that if this bill came to pass an additional 14 million workers would be eligible to contribute to a 403(b). The bill has been referred to the Committee on Ways and Means.   Representative Goode's office may be contacted at:   1520 Longworth House Office Building Washington, DC 20515-4605 202.225.4711 email     Track this legislation on the Thomas web site.   Home | Disclaimer | © 2004 bWise Guys, LLC. All rights reserved.