403(b) & 457 Annuities Plans
What is a 403(b)?
A 403(b) plan is a retirement savings plan for employees of public schools, non-profits and certain churches. With a traditional 403(b) plan your contributions are tax-deferred, meaning you pay taxes on the money when you take it out of the plan. With a Roth 403(b) plan you pay taxes on the contributions up front, but the money grows tax-free. Don’t forget to consider the impact on your Medicare (IRMAA) taxes when you choose between traditional and Roth accounts. I can help with these choices. Please contact me for more information.
What is a 457(b)?
A 457(b) plan is supplemental retirement plan for governmental and certain non-governmental employers. This type of a plan is tax-deferred, which means you pay taxes on the money when you take it out of the account. A 457(b) plan has many flexible features that allow you to save on a tax deferred basis while still having access to your money through loans, and unforeseen emergency distributions if the need arises.
If your employer offers both a 403(b) plan and a 457(b) plan you can maximize your retirement savings by contributing the maximum allowed to both plans. Please contact me for more information.