The 403b is a tax-advantaged employer-sponsored retirement plan available to public employees like educators!
It allows employees to save for retirement and works similar to that of a 401k for private-sector employees.
- Employer-sponsored retirement account (goes through your district)
- Payroll Deducted
- Flexible savings (start, stop, increase, decrease anytime)
- Pre-tax or Roth (after-tax) savings
- Grows tax-deferred (or tax-free for Roth 403b)
- Taxed at withdrawal
- Accessible at age 55 if separated from service, otherwise age 59.5 no matter what
- Allows savings of up to $19,500/ year or $26,000/ year if over age 50
- Allows for loans or hardship withdrawals in case of emergency
- Can offer a wide range of investments
- Can be consolidated and move districts/employers as well
The 403b or Roth 403b can be a versatile and useful plan for people looking to save more for retirement! However, like anything else, it is important to examine what options are available to us (investments, fees, etc) to see if it is the right fit or to compare a plan we are already participating in.
For more information about this, or if you would like to review your current setup, please reach out to us to book an appointment!