A 403(b) plan is a US tax-advantaged retirement for employees of public schools and tax-exempt organizations.
A 403(b) plan has pre-tax contributions which are not taxed until they are distributed from the plan.
Funds withdrawn before age 59½ are subject to a 10% tax penalty, but you may avoid the penalty in certain circumstances.
Unlike a 401(k), a 403(b) offers benefits for pensioners with 15 or more years of service with the same employer.
For the Roth 403(b), your earnings can be withdrawn tax free as long as it has been five tax years since your first time to give and given that you are at least 59½ years old.
There are two types of 403(b) accounts: a traditional 403(b) and a Roth 403(b).
You pay with pre-tax dollars in a traditional 403(b) account. Your taxable income is lessened by the amount you pay.
For younger employees who may not retire right away and thus have more time to accumulate tax-free earnings, a Roth 403(b) could be a good option. A Roth 403(b) may also be an option for employees who aren’t eligible for Roth IRAs, have higher earnings and/or want a pool of tax-free money for retirement.
A 403(b) plan may allow you to take money out of the plan when you:
At Cross Border Wealth, we offer strategic and tactical asset allocation and provide a range of investment solutions. We cater to your needs and preferences and tailor all our services to your expectations. Wherever in the world you are, we’ve got your back.
Our Approach: How We Partner With Clients
In today’s complex market and regulatory environment, we understand the continued need for innovative investment solutions and implementation expertise.
Deep bench of expertise
We draw on specialized experts including actuaries, risk managers and strategists. We also engage investment professionals spanning asset classes, including credit and rates teams with, on average, over a decade of experience.1
Strategic insights and knowledge transfer
We address our clients’ key challenges and provide timely insights on a variety of topics relevant to the pension landscape, including real-time viewpoints on market and regulatory changes, liability management perspectives and corporate finance.
Holistic implementation approach
We take a holistic approach to portfolio management and provide tailored investment strategies, with a highly curated investment approach and fiduciary mindset.
Extensive risk management
To directly align our investment process with a client's objectives, we leverage sophisticated analytics and dynamic portfolio monitoring that provide our clients with oversight throughout the investment process.
Plan-specific considerations, including:
Bespoke portfolio solutions through:
Portfolio solutions, utilizing a proprietary, fully integrated risk management system, including:
Examples of Our Partnership with Clients
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