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Teacher Retirement Plans

457 Plan

The 457 Plan is a retirement option available to government employees, commonly offered to professions such as teachers, firefighters, police officers, and other government personnel. Participants who have separated from service are eligible for early withdrawals before the age of fifty-nine and a half without incurring tax penalties.

403(b) Plan

The 403(b) plan is a retirement option commonly offered to employees of non-profit organizations, particularly as a retirement plan for public school teachers. It serves as the equivalent of a 401(k) plan for teachers, school employees, and other non-profit workers. The rules and contribution limits of these plans are similar. Withdrawals are typically not permitted before the age of fifty-nine and a half, and early withdrawals may incur a 10% tax penalty.


403(b) Plan:

What age can I make a withdrawal from my 403(b) plan without a penalty?

  • You can start making withdrawals after you reach the age of 59 and a half. If a withdrawal is made before this then there may be a ten percent tax penalty.

What is the smallest amount I can contribute to my 403(b) plan per month?

  • You can start with as little as $25 per month as a contribution to the plan.

When will I start paying taxes on my 403(b) plan?

  • Taxes will begin to be paid once you start taking distributions from your 403(b) plan.

Who is eligible for a 403(b) plan?

  • Non-profit organizations typically offer 403(b) plans, with education falling under this category.

457 Plan

Will I be charged an early withdrawal fee on my 457 plan?

  • No, you will not be charged an early withdrawal fee as long as you separate from service with the original provider. Participants who have separated from service can access their 457 plan account without incurring a tax penalty.

When do the contributions I have made to my 457 plan start to get taxed?

  • Your contributions are not taxed until you withdraw money from the account. You pay taxes during retirement. However, you may have to pay income taxes. 

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