403(b) Plans

403(b) Plans

There are a lot of different companies out there offering 403(b) plans to teachers. Your district might have 20+ providers of 403(b) plans and over 1,300 investment options.

If you’ve ever read The Paradox of Choice, you know that is far too many choices (especially if you aren’t an expert in the details of 403(b) retirement plans to know what makes a plan a good choice or a bad choice) more often than not results in an individual taking the path of least resistance: that path being either not making a choice at all or choosing the most convenient option.

Just as fast food isn’t the healthiest meal option (though convenient), the most convenient 403(b) plan is rarely the best option for your retirement account.

If you are interested in learning about which 403(b) retirement plan is often the best choice for teachers, I go into detail teaching you exactly that in a free webinar I run specifically to give teachers that information.

403b Plans

If you would like some general information on the retirement plans you can utilize to save more for retirement in addition to your pension, this video will give you a good background on understanding those plans.

If you want more detailed information what makes a plan good or bad as well as what the difference between a good & bad plan means to you (hint: a bad plan could mean several tens of thousands of dollars less in your account at retirement even if you save the exact same amount of money in the exact same investments).

If you are looking for general information on 403(b) plans, there are plenty of resources readily available to give you that info. I will highlight a couple things to note here though:

  • The 403(b) is similar to the 401(k) available to private sector employees. You can save up to $17,500 in 2013 into your 403(b) retirement plan & can save an additional $5,500 ($23,000 total) if you over the age of 50 due to a catch up provision
  • You can save into any or all of the 403(b), a 457, & an IRA
  • 403(b) plans can have plan & investment fees ranging from 0.15% to 2.4% per year. Even just a 1% yearly difference in fees in a retirement account can result in tens or hundreds of thousands of dollars difference in an account at retirement.

My hope is that you will attend an upcoming webinar as it has helped educate thousands of teachers on the importance of choosing the best plan available to them & how to actually do just that. The information shared on the webinar has been called “required material for every teacher”.

I can’t wait to see you there.

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Roth 403(b)

If you are looking for an official government source on 403(b) plans, please check the IRS’ page on the subject.