A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities. Its similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts.
What to do with 403 B?
You have a few options - you can a) keep it, and that money is yours to withdraw from when you retire, b) roll it into a new 403b plan with your new employer so they now administer it (and select new funds for it), or c) transfer it to an IRA where you now take control of it (which funds to invest in).
What are the downsides of a 403b?
But beware: While a terrific savings vehicle, 403(b)s have some drawbacks. 403(b)s have a narrower range of investments than 401(k)s, and many plans over-emphasize, or even prioritize, annuities as the primary investment option.
What are the disadvantages of a 403 B?
Drawbacks of a 403(b) plan High fees: Some 403(b)s charge higher fees that can eat into your profits, although this isnt true of all of them. Do some research into the plans administrative costs and any fees associated with your investments and try to keep these as low as possible to maximize your profits.
Whats the difference between a 401k and a 403b?
Contributions to traditional 401(k)s and 403(b)s are deducted from your paycheck pre-tax, and you only pay taxes when you withdraw money. The type of plan youre eligible for depends on your job. For-profit businesses generally offer 401(k) plans, while nonprofits generally offer 403(b) plans.
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A 403(b) plan (also called a tax-sheltered annuity or TSA plan) is a retirement plan offered by public schools and certain 501(c)(3) tax-exempt organizations.
Jan 4, 2017 If you work for a public school or certain tax-exempt organiza- tions, you may be eligible to participate in a 403(b) retire- ment plan offered
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