What Is A 403b Investment Plan?
A 403b investment plan is a retirement plan for public school employees and tax-exempt organizations and ministers. There are different forms of 403b plans available including:
- an annuity contract provided by an insurance company (also called tax-sheltered annuities or tax-deferred annuities)
- a custodial account – investments however are limited
- a retirement account income – investment options are annuities or mutual funds
What are the advantages of maintaining a 403b account?
For the employee:
- reduced taxable income
- tax deferred earnings on plan contributions
- the ability to take loans from a 403b account
For the employer:
- can serve as an attractive benefit to keeping great employees
- employees and employers share the cost of funding this type of investment plan
Please contact any one of our three Southwest Florida insurance offices to learn more about a 403b investment plan. We look forward to helping you!