Maximize Your Savings with Supplemental Retirement Options
We understand the importance of securing a comfortable future for school employees like you. In addition to traditional retirement plans, many school systems offer supplemental retirement options that can boost your savings. Let us guide you through a list of common supplemental retirement plans and provide a general definition for each.
Supplemental Retirement Options for School Employees
- 403(b) Plan:
A 403(b) plan is a tax-advantaged retirement savings plan available to employees of educational institutions. It allows you to contribute a portion of your income to a retirement account, typically invested in mutual funds or annuities, providing an additional avenue for savings.
- Roth 403(b) Plan:
A Roth 403(b) plan combines elements of both a Roth IRA and a traditional 403(b) plan. It allows you to make after-tax contributions, and qualified distributions in the future are tax-free, potentially providing tax advantages and greater flexibility.
- Tax-Sheltered Annuity (TSA) Plan:
A tax-sheltered annuity plan, commonly referred to as a TSA plan, is another name for a 403(b) plan. It offers school employees an opportunity to save by making tax-deferred contributions, often through salary deductions.
- 457(b) Plan:
A 457(b) plan is a deferred compensation plan offered by government entities and certain nonprofit organizations. It allows eligible employees, such as school employees, to save for the future on a tax-deferred basis, providing flexibility and additional savings opportunities.
Exploring Your Options
At Educators Finance, we understand that navigating the supplemental retirement options can be complex. Our team is here to help you explore these options, understand the specific plans available in your school system, and create a customized strategy that aligns with your goals.
Ready to maximize your savings with supplemental retirement options? Contact us at Educators Finance today. We’re here to provide guidance and help you create a comprehensive plan that incorporates the available options for school employees.
