|
Tax-deferred investment earnings. The earnings from your investment are compounded (reinvested) and can grow tax-deferred. These tax-deferred earnings may grow more quickly than those in a comparable taxable account because taxes are deferred until withdrawal.
Ability to reduce your taxable income. You determine the amount of your 403(b) contributions (up to IRS-defined limits) through a salary reduction agreement with your employer. Your contributions will be pre-tax, reducing your current taxable compensation.
High Contribution Limits. Enable significant annual contributions relative to other retirement accounts.
Catch-up contributions. If you are a long-serving employee or at least 50 years old, you may be able to contribute beyond the general IRS limits.
The ability to withdraw earnings tax-free. Your 403(b) plan might allow you to make Roth contributions, which are contributions made on an after-tax basis. The earnings in Roth 403(b) accounts may be exempt from federal income tax if you satisfy certain IRS criteria when you are eligible for a distribution under the 403(b) plan.
Employer Contributions. Depending on the design of the 403(b) plan, your employer may also contribute to the 403(b) plan.
Investment options under your control. Typically include a 403(b) plan that allows you to choose from a selection of investment funds, which often range from very conservative to aggressive growth.
Loan Provisions. Options to borrow against the account offer quick access to funds in emergencies, typically with lower interest rates than personal loans.
Withdrawal Flexibility. Various options for withdrawal are available, including hardship withdrawals and the ability to access funds for qualified educational and medical expenses.
Portability. If you leave your job, you can leave your money in the plan, roll your 403(b) account into another employer’s eligible retirement plan, or transfer it to a traditional IRA or (if rolled directly) a Roth IRA. You also have the option of cashing out [1]. The distribution will be subject to income tax and the 10% premature distribution penalty unless you meet one of the IRS exemptions.
[1] Please Note: For 403b(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ’88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions to an annuity contract issued after December 31, 2008, may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or, if applicable, the beneficiary upon the participant's severance from employment or upon an event, such as after a fixed number of years, the attainment of a stated age, or disability. For 403b(7) custodial accounts, Employee deferrals and employer contributions (including earnings) may only be distributed upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals and ’88 cash value (earnings on employee deferrals and employer contributions (including earnings) as of 12/31/88).
|
Get Started
Schedule a one-on-one virtual appointment with a Financial Representative to discuss your retirement and financial goals.
During this meeting, we will
review your:
 | state's pension plan, |
| 403(b) plan options, |
| Social Security (if applicable), and, |
| overall financial situation. |
Together, we will develop a personalized retirement plan. With a clear strategy, you can move forward confidently, knowing your retirement is both secure and stress-free.
Schedule Appointment
|
