403(b)/457 Plans

Tax-deferred retirement savings programs known as 403(b) and 457 plans are provided by certain employers such as public educational institutions (public schools, colleges and universities), certain non-profits, and churches or church-related organizations, as well as state and local government agencies.  While a 457(f) is for highly-paid non-profit employees, some employers may offer both 403(b) and 457(b) plans, and allow you to contribute to both plans.  Contact your employer to find out if both plans are available.

Similar to 401(k) plans, 403(b) and 457(b) plans allow you to contribute pre-tax money from your paycheck to your plan.  Deferring taxation of your pre-tax contributions and investment earnings until you withdraw the money, typically after retirement.

The public sector is probably the last bastion of the defined-benefit plan – that old-fashioned pension.  But nowadays, no single source of income may be enough to ensure a comfortable retirement, people need to save on their own, too.  TFA-Temecula can help.