A 403(b) plan is a U.S. tax-advantaged retirement savings plan available for public education organizations. Employee salary deferrals into a 403(b) plan are made before income tax is paid and allowed to grow tax-deferred until the money is taxed as income when withdrawn from the plan. Some 403(b) basics can be found on wikipedia.com. An economics teacher in the early career members network recommended this article from practicalretirementskills.com as an introduction to retirement options.
We also found some resources from the National Education Association on nea.org. These include:
- NEA: the guide to retirement (this article parses out what members should do during each decade of their lives — beginning with their 20’s).
- Updates for successful retired planning kit: what you need to know!
- When the going gets tough.
Also consider this article from kiplinger.com, which a member recently posted to the NJEA Group Facebook page. Although the article is from July of 2012, many of its points are still timely today.
Another member from the early career member network who is a math teacher is a big fan of the Roth 403(b). According to this article from money-zine.com, “a Roth 403(b) combines the contribution features of 403(b) plans, with the tax-free growth advantage of Roth IRAs.” Check out the article to learn more and see if a Roth 403(b) is right for you.