My fiancé has a retirement benefit that I do not really understand. He works for a University, and I believe it is a 403b plan, but it has some strange features.
It is a defined contribution plan. The University pays a generous percentage of his salary into this plan. However, it does not appear there is any mechanism for the Employee to make any contributions at all! Also, there is a statement in the program materials that the Employer contribution may be limited by "IRS limits", which I assume is the $17,500 limit.
Can this be right? I have never heard of a retirement plan where an employee cannot contribute. Also, in my 401k, I am pretty sure the "employer match" does not count toward that $17.5k limit. Does my fiance's retirement program make sense to any Mustachians out there?