403(b)s are employer-sponsored retirement arrangements for employees of non-profit organization and public educational institutions. If the Charter School you work for offers a 403(b) plan, eligible employees are allowed to participate by contributing pre-tax dollars up to the effective IRS limit. Employees can invest contributions across a broad selection of mutual funds. Contributions and investment earnings thereon are not taxed until the funds are withdraw from the plan.
All contributions and earnings are tax-deferred. 403(b)s offer high contribution limits to make savings for retirement easier. Currently the 2018 IRS annual limit is $18,500. 403(b)s also feature an additional $6,000 “catch-up” contribution provision for investors aged 50 and older. For more information on 403(b) plans you can visit the IRS Publication here.
Participation in the 403(b) plan is voluntary and should be based on your financial objectives and resources. Individual investment strategies should reflect your personal savings goals and tolerance for financial risk.
For additional information or any investment questions contact:
(781) 647-3050, ext.115