403(b) and Roth 403(b)
403(b) - National Benefit Services
A 403(b) plan, also known as a tax-sheltered annuity, is a tax-advantaged retirement savings plan available for public education organizations. Contributions are made on pre-tax basis and investment earnings grow tax deferred until withdrawal, assumed to be retirement.
A 403(b) plan allows you to contribute a portion of your compensation as a pre-tax or post-tax (Roth) contribution in order to save for retirement. Participation in the 403(b)plan is completely voluntary. If you are already contributing, at any time you can increase your contributions.
Roth 403(b) - National Benefit Services
Roth is being added as an option under the current 403(b) plans. The Roth 403(b) provides you with an option to make voluntary contributions on an after-tax basis. You get no current-year tax deduction for your Roth contributions. However, qualified distributions (funds in account for 5 years after first deferral and done after age 59 ½) will allow participants to withdraw their money tax-free. Employees can enroll for this option or stop contributions at any time.
More information about each plan can be found on the Employee Benefits Portal.