You choose the plan that’s right for you. You choose the investments that are right for you.
With up to four plans* to select from—403(b), 457(b), Roth 403(b) or Roth 457(b)—you have options on how to direct your savings. The features and benefits of each plan are slightly different so you might want to ask yourself a few questions such as:
Is it best for me to save pre-tax or after-tax?
With pre-tax you save on taxes today and pay them when you begin withdrawals. With after-tax, you pay taxes now and pay no taxes when you withdraw your funds.
How much am I able to save?
There are annual maximum contribution limits established each year (see “Get to Know Pension2/Contributions”). In addition, there are catch-up contributions for the plans that are a bit different—the 457 option allows rather aggressive saving limits if you’re nearing retirement and you think you haven’t saved enough.
When might I need to access my money?
The plans have slightly different rules about when you can begin taking withdrawals. For example, with the 403(b) plans, you must be separated from service before you can start withdrawing your funds.
All the plans have the same array of investment options grouped by investor type making your investment choice as easy, or as complex, as you’d like it to be.
If you would like to review a printable version of your plan highlights summary, click here.
* Not all plans are available in all school districts. Check with your payroll office before enrolling in a plan.