403b
Are you employed by an educational institution, church, or nonprofit? If so, there’s a retirement savings program authorized by section 403(b) of the Internal Revenue Code that allows eligible employees to set aside up to virtually 100% of their income for retirement. What is a Tax-Sheltered Annuity?An annuity that’s considered tax-sheltered is a way for employees of tax-exempt organizations and the self-employed to generate retirement income with pretax dollars. In addition, by having the employer make direct contributions to the plan, an employee is able to accumulate even more tax-free fund...
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Do you work for a nonprofit or tax-exempt organization? In that case, you’re probably driven by your desire to help others. But, who’s going to take care of you when it’s time to retire? Unlike your peers you’ve put in their time at a corporate gig, you probably don’t have access to a 401(k). Does that mean you have toself-fund your retirement? Not necessarily if your employer offers something known as a 403(b) retirement plan. What is a 403(b) Retirement Plan and How Does it Work?403(b)s are retirement plans offered by non-profit organizations and some tax-exempt employers, such as not-for-pr...
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