Manuel, age 46, works for the local public school teaching Physics to advanced science high school students. Manuel has been with the school for 21 years, earns $65,000 per year, and has never contributed to the 403(b)-retirement plan that is offered. The 403(b) plan offers dollar for dollar matching on all contributions. The school district is considering adopting a 457 plan.

a. Which plan will offer Manuel the highest tax deferral in 2022?

b. If Manuels spouse makes enough month for them to live on and they decide to save as much of his income as possible, how much is the maximum that he can defer in tax-deferred retirement savings vehicles assuming the school adopts the 457 plan?

c. What type of investments is Manual permitted to make in the 403(b) plan?

d. What type of employers may adopt a 403(b) plan?

e. What type of employees benefit the most from the implementation of a 403(b) plan?