What is a 403(b)?

When it comes to retirement planning there are many options for savings accounts.  One that is not as common as others is a 403(b).  Many people do not know about these, but they may be the best option for some people.
So what is a 403(b)?  People such as school teachers or those who work for non-profit companies, 403(b) plans may be your best option.  These plans are for those people who need additional support to reach their retirement goals.  These plans are tax deferred so they may be a lot of help when planning for retirement. 
These plans are meant for people who work for schools, colleges, and churches. Those that work for certain tax-exempt companies such as hospitals or non-profits are also eligible for these plans.  If you are one who works for one of these types of companies then it is definitely a good idea to check into these plans and see if they are what you need to help you to get ready for retirement.
These plans are similar to 401(k) plans.  Some even call 403(b) plans a cousin of the 401(k) plans because they are rather similar.  403(b) plans allow you take a portion of your salary and put it into this employer sponsored plan as a way to help you save for retirement.  Not all will, but some employers will even match your contributions.  If you are looking at these plans find out if your employer will match your contribution and how much they are willing to match.
It never hurts to seek professional advice when you are trying to figure out what plan for retirement is best for you.  Not one plan is best for everyone and getting professional advice may help you pick the plan that will help you to get the most for retirement.  A professional will help you decide what plan will help you get the most you can possibly get for your retirement.
Just like with a 401(k) there are penalties for withdrawing money early from your 403(b) account.  This account is meant to help you save money for retirement, so the money should stay in the account until you are in retirement.  You can add to it, just do not take anything ut of it.
A 403(b) savings plan is another option to help you to get ready for retirement. These are not as common as other retirement savings accounts.  If you are interested in getting one of these accounts talk to your employer to see if they will match your contributions, and also find out how much they are willing to match.  Just like with a 401(k) you want to make sure that you are contributing the maximum that the company will match to the account.  That way you can get the most possible for retirement, so you will have less to worry about once you do retire.

Related Blogs

    Payday Advance © 2014 Frontier Theme
    Visit Us On TwitterVisit Us On Google PlusVisit Us On Pinterest