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:

  1. an annuity contract provided by an insurance company (also called tax-sheltered annuities or tax-deferred annuities)
  2. a custodial account – investments however are limited
  3. a retirement account income – investment options are annuities or mutual funds

What are the advantages of maintaining a 403b account?

For the employee:

  1. reduced taxable income
  2. tax deferred earnings on plan contributions
  3. the ability to take loans from a 403b account

For the employer:

  1. can serve as an attractive benefit to keeping great employees
  2. 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!