Understanding Roth 403(b) plans

Roth 403(b) plans are offered to employees in education, non-profit organizations, and certain religious organizations.  These plans are a hybrid of traditional 403(b) plans and Roth IRAs, and they were introduced 2001 to help offset some of the economic effects of a recession. Key aspects of Roth 403(b) plans: Roth contributions are post-tax contributions meaning…

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Understanding 457 Plans

457 plans are offered by state and local governments and some non-profits. These are pre-tax accounts; just like 401(k) and 403(b) plans, contributions come from your paycheck before income tax is withheld, but you will pay taxes when you withdraw the money in retirement. But in the meantime, the account is allowed to grow tax-free.…

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Understanding 403(b) plans

This type of employers sponsored retirement plan is offered to education, non-profit organizations, and certain religious organizations. Key aspects of 403(b) plans: These are pre-tax accounts, so you lessen your tax burden in the present but will have to pay taxes when you start using the money in retirement. Employers must allow all employees to…

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Understanding Roth 401(k) Plans

Roth plans are a hybrid offered by employers that combine traditional 401(k) aspects with Roth IRAs.  They are a relatively newer type of plan, created in 2001 to offset some of the economic effects of the recession of the time. Employers since 2006 have been able to amend their Traditional 401(k) plans to let participants…

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