SETTING YOUR PATH TOWARDS FINANCIAL SECURITY
403b and non-profit retirement plans
Employers of schools, religious organizations, hospitals, governmental organizations, and other non-profit organizations may be offered retirement plans that are different than the traditional 401(k) plans that many people are familiar with. They still offer tax efficiency and can help employees save for retirement. 403b and-non-profit-retirement-plans
A 403(b) retirement plan is similar to a 401(k) plan. This plan allows employees of non-profit organizations to contribute their pre-taxed dollars into a tax-deferred investment account, which is the same design as a 401(k). There are typically investment options for mutual funds and annuities, allowing a diversified way to save for retirement. In certain situations, there may be an option to contribute more than the traditional contribution, which may be advantageous.
457 Deferred Compensation Plan
This plan is commonly offered to state and government employees which allows them to defer their compensation as a way to save for retirement. It can be advantageous because an employee’s taxable income is lowered and any interest on earnings is not taxed until funds are withdrawn.