Build Retirement Assets
Create Assets You Own
Use payroll contributions to build a 403(b) account alongside your pension. The account can grow over time based on your contributions, investment choices, fees, and market performance.
Illustrative 403(b) Growth Over 20 Years
Hypothetical 6% annual return with monthly contributions
Illustrative Account Value ($)
Years Contributing
- 20-year contribution period
- 6% hypothetical annual return
- Monthly contributions and compounding
- No employer match
- No taxes
- No fees deducted
Why It Matters
Your Pension Is the Foundation. Your 403(b) Helps You Build Beyond It.
Use Time to Your Advantage
Give Contributions Time to Compound
Starting earlier gives each contribution more time to potentially grow. Even a consistent monthly amount can become a meaningful retirement asset over a long career.
Add Retirement Flexibility
Build Another Retirement Resource
Pension adjustments may not always keep pace with rising living costs. A 403(b) account can create another source of retirement assets to support future income needs.
The Power of Consistency
The Amount Matters. The Time Matters More.
Consistent contributions made over many years can create a meaningful retirement asset. Starting earlier gives your contributions more time to compound.
10 years
$40,970- Employee contributions
- $30,000
- Illustrative account value
- $40,970
20 years
$115,510- Employee contributions
- $60,000
- Illustrative account value
- $115,510
30 years
$251,129- Employee contributions
- $90,000
- Illustrative account value
- $251,129
Hypothetical illustration only. Assumes $250 monthly contributions and a 6% annual return compounded monthly. Does not reflect fees, taxes, withdrawals, or actual investment performance. Returns are not guaranteed.
Understand Your District Plan
Your 403(b) Strategy Starts With the Decisions You Can Make Today.
- 01
How Much Should I Contribute?
Review a contribution amount that fits your current budget, retirement timeline, and long-term goals. Contributions can generally be adjusted over time subject to plan rules.
- 02
Traditional or Roth 403(b)?
If your district offers both, understand how pre-tax and Roth contributions are treated differently and which options are available through your employer plan.
- 03
Which 403(b) Options Fit My Retirement Plan?
A retirement plan review can help you understand the 403(b) options available through your employer plan, compare key features, and determine what questions matter most for your retirement goals.
- 04
Can Small Contribution Increases Make a Difference?
They can. Even modest increases over time may have a meaningful impact when contributions have years to compound. As your salary and budget change, periodically reviewing your 403(b) contribution can help keep your retirement strategy moving forward.
Two Parts of the Retirement Picture
Your Pension and 403(b) Do Different Jobs.
Retirement-Income Foundation
State Pension
- Benefit determined by retirement-system provisions
- Often based on service credit, compensation, retirement age, and payment elections
- COLA provisions vary by retirement system and tier
- Provides a retirement-income baseline
Employee-Built Retirement Asset
District 403(b)
- Funded through employee payroll contributions
- Account value depends on contributions, fees, investment choices, and investment performance
- Contribution level can generally be adjusted subject to plan rules
- Creates a separate retirement asset alongside the pension
The pension helps define what the retirement system may provide. Your 403(b) helps determine what you build alongside it.
403(b) Questions
Common Questions From School Employees
Start with an amount that comfortably fits your current monthly budget. Even small, consistent contributions can grow over time. As your salary increases or financial priorities change, you can review whether gradually increasing your contribution makes sense for your retirement goals.
Traditional 403(b) contributions are generally made before federal income taxes, which may reduce taxable income today; withdrawals are generally taxable in retirement. Roth 403(b) contributions are made with after-tax dollars, and qualified distributions can be tax-free when applicable requirements are met.
Many 403(b) plans allow employees to increase, decrease, or stop payroll contributions during the year through a salary reduction agreement. The timing and procedures depend on your district’s plan and payroll rules.
Your state pension can provide an important retirement-income foundation based on your retirement system’s rules. A district 403(b) gives you the opportunity to build a separate retirement asset through payroll contributions that may provide additional flexibility and income resources in retirement.
Your employee contributions and account earnings remain in your 403(b) when you leave a district or retire. Depending on the plan, you may be able to leave the account where it is, roll eligible amounts into another employer plan, or complete a rollover to an IRA. A properly completed direct rollover can generally avoid current taxation on eligible pre-tax amounts.
Your district or its Third-Party Administrator (TPA) can identify the providers and 403(b) options available under the employer plan. A District Review with our team can help you understand those available options, compare key features and fees, and see how they may fit within your broader retirement plan.
403(b) distributions may become available after certain events such as reaching age 59½, separation from service, disability, or other events permitted by the plan. Taxes and possible additional early-distribution taxes depend on your age, the type of account, the reason for the distribution, and applicable tax rules.
Account growth depends on your contribution amount, time horizon, fees, and investment results. For example, contributing $250 per month for 20 years at a hypothetical 6% annual return compounded monthly could grow to about $115,500 before fees and taxes. This is an illustration only and is not a forecast or guarantee.
Start While You Still Have Time
The Best Time to Understand Your 403(b) Is Years Before You Need It.
A retirement strategy review helps you understand your state pension projection with your 403(b) options so you can make informed decisions while time is on your side.
Schedule a Retirement Review