Youve probably heard of a401(k).
Maybe youve heard of anIRA, too.
But swimming in that alphabet soup is yet another retirement savings plan the 403(b).
Either way, weve got the lowdown on these plans.
Do I Qualify for a 403(b)?
Its also available to some ministers.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you might easily return later.
Well keep it updated as offers changes or expire.
These plans,created by Congress in 1958, were established to encourage employees to save for retirement.
Enter the 403(b), which Congress intended to supplement those pensions.
Your pre-tax contributions to all of your accounts cant exceed $22,500.
If youre 50 or older, you might make additional catch-up contributions of $7,500 in 2023.
Some employers will also contribute to your account with an employer match.
Some plans allow you to make after-tax contributions, as well.
I encourage employees to take advantage of the organizations retirement plan first, particularly if there is a match.
Who would turn down free money?
An employer may let you choose between several providers and investment products.
The employees the participants pay more than they likely otherwise would with a similar 401(k) plan.
But its not just annuities that can be expensive.
It doesnt really matter what product youre looking at.
In the 401(k) world, theres just one option, he said.
Its a lot simpler than 403(b)s. Theres just too much choice.
It really paralyzes people.
403(b) or IRA?
Whatever you do, save early and save often.
Find her on Twitter: @sarahkuta.
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