What is a 403(b)?

The 403(b) plan is a tax-advantaged retirement savings program offered only to employees like you who work in the educational, medical, religious, and other areas of the nonprofit world. Those who are eligible can defer money into a 403(b) account to save for retirement very much like employees in the for-profit world can do with a 401(k) plan.

Investing with a 403(b) plan is a wise move, whether it’s your primary source of retirement saving or you use it as a supplement to a pension or other account. A 403(b) plan offers high contribution limits, a range of investment choices, and the services and options you need to make saving for retirement convenient and efficient.

More Choice and Control of Your Assets

You decide:

• How much to contribute (although there are contribution limits).

• Which funds to invest in.

• Which of the flexible withdrawal options you want when you retire.

Tax Advantages

As with all retirement plans, 403(b)s offer tax advantages—whether you save on taxes now through traditional pre-tax contributions or later with Roth after-tax contributions.

Either way, your savings will have the benefits of compounding and tax-deferred growth.