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403(B) Retirement Plans For Teachers

At Appreciation Financial, our agents focus solely on retirement planning for teachers and public employees. For those working in education, a 403(b) is one of the best retirement income sources available. We can help guide you through the process of picking the right 403(b) plan as you work to balance your financial goals for tomorrow with your needs for today.

The different 403(b) plans can be confusing. We understand that. Our licensed agents have the knowledge and experience you need to answer your questions and provide a personalized analysis of your portfolio. Your best interests are our top priority, and our Appreciation Financial experts can help you analyze the specifics of the 403(b) options available to you.

What is a 403(b) plan?

A 403(b) plan, also referred to as a tax-sheltered annuity or TSA-plan, is a retirement account that is available to certain public employees. Eligible employees usually include public school employees involved in day-to-day operations. Generally, most teachers and administrators at public schools are eligible for a 403(b) plan.

A 403(b) plan is similar to a 401(k) plan in many ways. Both plans offer tax-advantaged benefits for employees to save for retirement. However, 401(k) plans typically serve private-sector employees.

Advantages of a 403(b) plan

  • The earnings and returns on funds invested in a regular 403(b) retirement plan are tax-deferred until a withdrawal is made. You are still subject to the 10% penalty if you begin withdrawing from your retirement before reaching the age of 59 and a 1/2.
  • 403(b) plans for teachers tend to have shorter vesting schedules than 401(k) plans. This means the money in the account is yours sooner.
  • 403(b) plans for teachers have the same maximum contribution limit as a 401(k), but there is an exception to that—if you have served 15 or more years in your current position, you can contribute an additional $3,000 annually.
  • Teachers with 403(b) plans are potentially eligible for matching contributions made by their employer. This option may not be available for every employee, and the amount can vary from employer to employer.

Take retirement into your own hands with a teacher 403(b)

It can be easy to get bogged down in the complexity of choosing between 403(b) plans and making the most out of your retirement savings. At Appreciation Financial we can help guide you through choosing the right 403(b) plan for you, counsel you on your salary contributions to that plan, and provide you with advice to help you achieve your financial goals. Contact us today to learn more about 403(b) plans and to get started on saving for your retirement!

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