A 403(b) is considered to be a type of retirement plan that can be offered through your employer if you are employed for a school, a federal or state government entity, or a non-profit organization. A 403(b) can also be referred as a defined contribution retirement plan. A 403(b) is much like a 401(k) in that you can make pre-tax contributions, another place where your investment will grow tax-free, and you may only pay a tax if you make early withdrawals on your 403(b). A 403(b) is named after the section of the IRS code that is regulating it. A 403(b) is also different than a 401(k) in the sense that you will have a limited amount of choices with your investment, which could include annuities and mutual funds. A 403(b) is an invaluable way to save money for your retirement and can also serve as a supplement to any traditional pension plan or retirement plan that you may have in place elsewhere.
Additionally, a 403(b) allows you put a percentage of your salary into your employer sponsored plan to ultimately help you save for your retirement years. In a 403(b) plan, you usually will not have to pay taxes on what you have invested until you take out any money. Some 403(b) plans may even allow you to take out a loan against the money that you have invested in your 403(b) plan. You will need to make sure that you understand the risks of doing so because if the loan is not properly paid back on time then that could trigger penalties from the IRS for an early withdrawal. You will want to meet with United Retirement Advisors Group to help you to decide what is the right avenue to pursue in regards to your retirement.