Under Exempt payee codes # 1 states, "An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2).
I understand the "Section 501(a) part, but what does the rest of the sentence mean??? Does this mean ALL IRAs are coded with an exempt payee code "1" or is it just is they fall under section 403(b)(7)????
A 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.