Retirement Frequently Asked Questions

Both types of plans are tax deferred, but the 457(b) lets you start withdrawing money from your account as soon as you stop working for the sponsoring employer, no matter your age or in the case of death, disability or unforeseen emergency, regardless of your age if certain requirements are met. Meanwhile, 403(b) plans allow standard, penalty-free withdrawals at age 59½, as well as limited early withdrawal exceptions.

With a 403(b), contributions are made pre-tax. Taxes are then paid on withdrawals, typically in retirement when you will likely be in a lower tax bracket. With a Roth 403(b), your contributions are made after taxes have been paid, and then withdrawals taken within the limits of your plan are tax free.

Depending on your district plan, the 403(b) may have a 15 year service catch-up which may add up to $3,000 annually for 5 years. You must qualify every year through your district’s administrator.

In 2023, you may contribute up to $22,500 to a 403(b) and/or Roth 403(b). If you are over age 50, you may contribute an additional $7,500 annually in 2023. This limit is combined for both plans.

Yes. If you are still employed, you may transfer your 403(b) between eligible 403(b) providers. If you are no longer employed or otherwise meet a qualifying event, you become eligible to roll funds over to an IRA or other eligible retirement plan.

In 2023, you may contribute up to $22,500 to a 457(b). If you are over age 50, you may contribute an additional $7,500 annually in 2023. This limit is separate from the 403(b) limit.

Both types of plans are tax deferred, but the 457(b) lets you start withdrawing money from your account as soon as you stop working for the sponsoring employer, no matter your age or in the case of death, disability or unforeseen emergency, regardless of your age if certain requirements are met. Meanwhile, 403(b) plans allow standard, penalty-free withdrawals at age 59½, as well as limited early withdrawal exceptions.

Depending on your district plan, for the year 2023, you may be able to add up to an additional $22,500 in addition to the standard limit of $22,500. This cannot be used with the age 50+ catch-up provision. This catch-up is used during your final 3 years before retirement age (deemed as age 62 or 65, depending on your district plan). You must qualify every year through your district’s administrator.