Review:
403(b) Plan
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
A 403(b)-plan is a retirement savings plan for employees of certain tax-exempt organizations, public schools, and churches.
Key Features
- Tax-deferred contributions
- Employer matching contributions (if offered)
- Investment options such as mutual funds and annuities
- Income tax deferral on earnings until withdrawal
- Early withdrawal penalties and required minimum distributions at age 72
Pros
- Tax-advantaged way to save for retirement
- Potential for employer matching contributions
- Variety of investment options
Cons
- Limited contribution limits compared to other retirement plans
- Early withdrawal penalties and required minimum distributions can be restrictive