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Teacher Retirement Plans

403(b) Plan

The 403b plan is a retirement plan offered to non-profit organizations. Very often it is offered as a retirement plan for public school teachers. The plan is a 401k equivalent for teachers, school employees, and other non-profits. The rules and contribution limits for the two plans are similar. Withdrawals cannot be made before the age of fifty-nine and a half. If an early withdrawal is made then there may be a 10% tax penalty. 

457 Plan

The 457 plan is a retirement plan offered to government employees. It is often offered to teachers, firefighters, police officers, and other government employees. A 457 plan allows for withdrawals before the age of fifty-nine and a half from participants who have separated from service. These early withdrawals will be made without 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?

  • You will start paying taxes once you start taking distributions 

Who is offered a 403(b) plan?

  • Non profit organizations offer 403(b) plans. Education falls under the non-profit category. Here at PFSNH we specialize in teachers 403(b) plans. The 403(b) plan is a common retirement plan offered by school districts to public school teachers. 

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. A 457 plan will allow participants that have separated from service access to their account without 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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