What is a 403(b)?
            A 403(b) is a tax deferred retirement plan open to employees of educational institutions and some non-profit organizations.  Contributions and earnings grow tax-free until withdrawal, when they are taxed as usual income.

Who is eligible for 403(b)s?
            Employees of tax-exempt organizations, including teachers, school administration, school personnel, nurses, doctors, professors, researchers, librarians, and ministers.

Why should I invest in a 403(b)?
            Strong retirement: Most employees of non-profit organizations get a pension upon retirement, few of which equal salary.  The 403(b) is a great supplement to a pension.
            Lower Taxes:  Contributions are made pre-tax, which greatly reduces tax bills.  In the 25% tax bracket, contributing $100 per month to a 403(b) reduces Federal income taxes by about $25.  Therefore, your $100 only costs you $75. 
            Other Tax Savings: All capital gains, interest, and dividends grow on a tax-deferred basis until time of withdrawal. 

How does it work?
            You can set aside money for retirement on a pre-tax basis through a salary reduction agreement with your employer.  This savings is payroll deducted by your school district and is transferred to an approved company of your choice.  All of our product offerings are approved by TRS and the Texas school districts.

Will participating in a 403(b) plan reduce Social Security benefits?       No.

How much can I contribute annually?

• $15,500
• If you are 50 years old or more, you may contribute an extra $5000 annually.

What is a fixed annuity?
            Fixed annuities are contracts with insurance companies guaranteeing you will earn a minimum rate of interest while your account is growing.  The company also ensures the periodic payments will be a guaranteed amount per dollar in your account.  You may withdrawal your money in a lump sum at 59½.

Can I change my contribution amount?
            Yes, at any time you may change the amount.

Can I stop contributions altogether?
            Yes, at any time you may change the amount.

Do I need my employer’s consent to start a 403(b)?
            Yes.  A salary reduction agreement is an agreement between you and your employer in which the employee agrees to the salary reduction and the employer contributes the amount to the 403(b) for the employee.

When can 403(b) money be distributed without penalty?

• When participant reaches 59½
• When participant separates from service in the year turning 55 (and must be retired)
• If participant becomes disabled
• Through a loan
• When participant dies

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