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- 403b
- 403b Roth IRA
- June 18, 2025
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403(b) Roth IRA Your Retirement Savings Guide
Understanding 403(b) Plans
A 403(b) plan is a retirement savings plan available to employees of public schools, certain tax-exempt organizations, and ministers. It’s similar to a 401(k) plan, but offered through a different type of employer. Contributions are made pre-tax, meaning you don’t pay income taxes on the money until you withdraw it in retirement. This lowers your current taxable income, resulting in tax savings now. However, your withdrawals in retirement will be taxed as ordinary income.
The Appeal of Roth IRAs
A Roth IRA, on the other hand, works differently. You contribute after-tax dollars, meaning you’ve already paid taxes
