EP 8 - How Does A 403b Work

Understanding your 403b Retirement Plan and Its BenefitsIn today's episode, we're diving into a crucial retirement benefit often overlooked by many: the 403b plan. Especially relevant for non-profit workers, like those in school districts, the 403b is a powerful tool for building retirement savings.Surprisingly, the state doesn't emphasize this benefit, favoring its own Deferred Compensation Plan (DCP). Why? Well, the DCP generates revenue for the state, unlike the 403b, so they downplay its significance. But fear not, I'm here to shed light on the advantages of the 403b.I recently shared a success story where one of my clients, facing a tax dilemma due to a denied rollover of sick leave, triumphed after concerted efforts. It's a reminder to ensure your school district allows the transfer of sick leave into the VEBA account, potentially saving you thousands in taxes.Now, onto the 403b: a flexible retirement savings plan allowing you to start, stop, and adjust contributions easily. I share insights on contributions, access to funds, taxation, and the importance of selecting the right investment options.Curious about starting your own 403b? Be cautious, as there are different types—TSAs and 403b7s—and choosing the wrong one can lead to complications. I've prepared a list of the top 5 questions to ask before opening a 403b, available for download in the description.Outline:00:00 Introduction and Welcome00:36 Understanding the 403b Plan02:07 Success Story: Client's Retirement Savings04:30 Exploring the 403b Plan05:59 Accessing Your 403b Plan08:13 Tax Implications of 403b Plans09:00 Investing with 403b Plans10:20 Choosing the Right 403b PlanResources Go here to get advice on your DCP⁠⁠5 403b Questions You Need To Ask⁠⁠Free Washington Retirement Planning Community⁠⁠⁠Plan 3 Investment Advice⁠⁠Schedule Meeting⁠More free resources at ⁠WATRSPERS.com⁠