What is a 403b plan and why should you consider contributing?
A 403b plan is a 401k plan for the non-profit and education sectors. A 403b allows you to deduct funds from your paycheck pre-tax (traditional 403b) or post-tax (Roth 403b) to save for your future. These funds can be used at retirement to supplement your pension and other savings to help you continue your standard of living in retirement.
For teachers, the district matches your contributions based on years of service. Regardless of the match of the school district you can contribute to the plan. You have the ability to contribute up to $20,500 (plus a $6,500 catch up for 50+) in 2022.
Your funds can be invested in a number of different sub-accounts based upon your risk tolerance and time horizon.
Saving for your future is important. The sooner you start the longer you have for your funds to work for you. If you haven't started yet....we recommend you do. If you have, we recommend you consider increasing the amount you contribute each year.
