![]() Often an insurance company will suggest annuity products for their 403(b) plans. What insurance companies have going for them is lots of sales reps with the ability to seek out potential customers. Insurance companies have been a traditional option for smaller nonprofits, but not necessarily because of their expertise in dealing with small plans. The New York Times has reported on the difficulties that smaller nonprofits face when sifting through retirement plan options. While they can offer a wide selection of investment options, large financial players more often cater to larger retirement plans. Large, well-known 403(b) companies like TIAA and Fidelity may seem to be the obvious choice, but these investment giants aren’t always the answer for smaller nonprofits. Fidelity is a distant second with everyone else even further back. TIAA is by far the largest 403(b) provider, according to PlanSponsor’s 2019 survey. Often, this means defaulting to one of the larger 403(b) providers, who we’ve laid out for comparison in the chart below: ![]() Small nonprofit businesses may struggle to find time to even look for a provider, much less handle tasks associated with a retirement plan. Researching, administering, and monitoring investments for a 403(b) plan might be a matter of course for large hospitals and universities, but these can be a huge hurdle for small (and even medium-size) nonprofits. With higher education and healthcare accounting for nearly three-quarters of all 403(b) assets, this type of plan is often the go-to for nonprofits of all sizes.īut let’s face it: as a small nonprofit, there are just some things that you struggle to find the time, resources, or staff to do. With higher education and healthcare accounting for nearly three-quarters of all 403(b) assets, this type of plan is often the go-to for nonprofits of all sizes.Ī 403(b) is a big deal - in fact, they’re the second most common type of defined-contribution plan out there. A 403(b) is a big deal - in fact, they’re the second most common type of defined-contribution plan out there.
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