
Which pension plan is better: Plan 2 or Plan 3?
Which plan should you choose Plan 2 or Plan 3? This is an important and permanent decision that all Washington TRS, PERS, and SERS members face when they begin their employment.
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Which plan should you choose Plan 2 or Plan 3? This is an important and permanent decision that all Washington TRS, PERS, and SERS members face when they begin their employment.
In order to understand how taxes work on Plan 3, we must fully understand what plan three is first. Plan 3 is a pre-tax retirement account, meaning that we haven't paid the taxes associated with this money yet. Every dollar we have in it, we still owe taxes on.
Washington TRS, PERS & SERS Plan 3 members have 2 parts to their retirement. A pension that is guaranteed to last the rest of their lives and an investment account that they can manage and spend as they see fit.