How Much Can I Put Into a 403b?
In 2020 educators can save up to $19,500 and if they are age 50 or older, they can save an additional $6,500.
Some educators with 15 years of service with the same employer might be save an additional $3,000 a year for five years for a total of $15,000.
Educators are also eligible to use a 457 plan which has the same maximum and age fifty catch-up. It also has a much bigger special catch-up that allows some educators to save $37,000 per year the last three years before their normal retirement age.
Can I Change the Amount?
The government doesn’t put limits on the number of times you can change your contribution; however, some employer’s do so we need to check with your plan.
Can I Change the Vendor That I Am Using?
Yes, you can change vendors for your contributions. Most plans also allow you to exchange your existing account balance into a new vendor. However, we must first check if there are any fees or costs in doing so. See plan below
What If I Need the Money Before I Retire?
The 403b is a retirement account; thus it has restrictions on how you can get money without a penalty before age 591/2. Some 403b plans do allow participants to borrow a percentage of their account’s value before they retire.
What Happens at Retirement?
At retirement, you have the option of staying in your 403b plan or rolling it over to an IRA. This decision depends on such factors as costs, choices, and control.
Read more: Rollover Checklist
Read more: Saving for Retirement at Work
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