A 403b is much like a 401k or a 457. The 403b gives you an added vehicle to save, and store money that is tax deferred until you ultimately decide to retire.

We all know that sometimes life is tough, and life is hard, the 403b is one of the few investment vehicles that encompasses a loan provision.

403bs are very beneficial for your future. More often than not, most people know someone that retired and then to no avail had to come back to the workplace only a year to two years later because they could not afford not to. The 403b was put into place so that you can have the opportunity of saving added dollars that will contribute to the amount that you will receive after you retire.

Unfortunately, because teachers and school districts make no contributions to the Social Security they are unable to receive it. Educators and employees within the school system are not eligible to receive Social Security. More importantly, and what is most commonly misunderstood is: if you are married, and your husband or wife contributed to the Social Security system and they pass away, you will not be able to receive your spouse’s Social Security widow’s benefits.

TSA stands for ‘Tax Sheltered Annuity.’ Simply put it means that you do not pay taxes on the money going in or the interest gained. However, if you pull the monies out early or start to take distributions at retirement you will be required to pay taxes on the monies distributed, not the full account value.

As long as you are an employee of a tax-exempt organization established under section 501(c)(3) of the Internal Revenue Code, you are able to participate in the 403(b).

Call American Teachers Retirement Services, LLC. (972-562-0362 or 800-923-8299), to meet with an agent and get your questions answered by a professional.