Retirement Plans:
Building Confidence for Your Future
Planning for retirement can feel overwhelming, but you don’t have to face it alone. By participating in employer‑sponsored retirement plans, you can take meaningful steps toward creating a future that supports your lifestyle and gives you peace of mind.
A 403(b) plan is a powerful retirement savings program available to employees of public schools, non‑profit organizations, and certain faith‑based institutions. It’s designed to complement any pension or employer‑provided benefits, giving you an additional way to build long‑term financial security.
By contributing regularly, you can take advantage of tax benefits and compound growth, helping you prepare for a retirement that supports your lifestyle.
How a 403(b) Works
You contribute a portion of your paycheck directly into the plan.
Contributions can be invested in options such as mutual funds or annuities, depending on what your employer offers.
Over time, your savings grow tax‑advantaged, making it easier to accumulate wealth for retirement.
What is 403(B)?
Two Types of 403(b) Plans
Traditional 403(b)
Contributions are made before taxes, which lowers your taxable income today.
Your savings grow tax‑deferred, meaning you don’t pay taxes until you withdraw the money in retirement.
This option is often chosen by individuals who expect to be in a lower tax bracket after they retire.
Roth 403(b)
Contributions are made after taxes, so you pay taxes up front.
Your money grows tax‑free, and qualified withdrawals in retirement are not taxed.
This option is ideal for those who expect to be in a higher tax bracket later, or who want the certainty of tax‑free income in retirement.
Why a 403(b) Plan Matters
Flexibility: Choose between Traditional and Roth contributions based on your financial goals.
Accessibility: Designed specifically for educators, non‑profit workers, and faith‑based employees.
Growth Potential: Contributions and earnings compound over time, helping you build a stronger retirement nest egg.
Portability: Your savings can move with you if you change jobs, through rollovers into other retirement accounts.
A 457(b) plan is a supplemental retirement savings program designed for employees of government agencies and certain non‑governmental organizations. It works much like a 403(b) plan, allowing your contributions to grow tax‑deferred, but it also offers unique features that make it especially flexible for participants.
Key Features of a 457(b) Plan
Access to Funds When Needed
Life doesn’t always go according to plan. A 457(b) allows access to your savings through loans or emergency withdrawals if unexpected financial needs arise. This means you can tap into your retirement account without completely derailing your long‑term goals.
Flexible Contribution Options
You can contribute regularly through payroll deductions, and many plans allow you to adjust your contribution levels over time. This flexibility helps you save consistently while adapting to changes in your income or financial priorities.
Works Alongside Other Retirement Accounts
One of the biggest advantages of a 457(b) plan is that it can complement other retirement accounts, such as a 403(b) or IRA. If your employer offers multiple plans, you may be able to contribute to each, maximizing your retirement savings potential.
What is 457(b)?
Why a 457(b) Plan Matters
Tax‑Deferred Growth: Your contributions and earnings grow without immediate taxation, allowing your money to compound more efficiently.
Supplemental Savings: Provides an additional layer of retirement security beyond pensions or other employer‑sponsored benefits.
Adaptability: Offers features like loans and hardship withdrawals that make it more flexible than many other retirement plans.
Maximization: When paired with a 403(b), you can contribute to both plans, significantly increasing your retirement nest egg.
Maximizing Your Retirement Savings
When it comes to preparing for retirement, the more you save, the stronger your financial foundation becomes. If your employer offers both a 403(b) and a 457(b) plan, you have the unique opportunity to contribute to both. This means you can double your savings potential, accelerate your progress, and create a more secure future for yourself and your family.
By taking advantage of both plans, you’re not only increasing the amount you set aside each year—you’re also diversifying your retirement strategy, giving you more flexibility and confidence as you move closer to retirement.
The earlier you begin saving, the more powerful your money becomes thanks to compound growth. Even small contributions made consistently can grow significantly over time. Payroll deductions make the process simple and automatic, so you’re building your retirement nest egg without even thinking about it.
Over the years, your retirement savings can:
Supplement Employer Benefits
Add an extra layer of financial security on top of pensions or other retirement programs your employer may provide.
Stay With You Through Career Changes
Your savings are portable. If you change jobs, you can transfer or roll over your funds into other employer plans or retirement accounts, ensuring your hard‑earned money continues to work for you.
Be Consolidated for Continued Growth
Retirement savings can be combined into accounts such as a traditional IRA, making it easier to manage your funds while keeping them growing tax‑advantaged.
Why Start Now?
Start building your future today.
Maximizing your retirement savings isn’t just about putting away more money—it’s about creating options, flexibility, and long‑term security. By contributing to both a 403(b) and a 457(b), you’re taking proactive steps to ensure your retirement years are comfortable, confident, and financially stable.
The sooner you begin, the stronger your retirement savings will be.
Schedule a free consultation now to explore how combining 403(b) and 457(b) contributions can help you reach your retirement goals faster.
