403(b) Retirement plans
Let our high-quality mutual funds and easy-to-manage plan help you achieve retirement success.
What exactly is a 403(b) plan?
You could say that the 403(b) plan is a close relative of the more familiar 401(k) retirement savings plan. Both plan types offer tax-deferred growth. The major difference is the types of businesses that offer them.
- 401(k) plans are generally available to employees of for-profit companies.
- 403(b) plans are generally offered by public education institutions and certain tax-exempt organizations.
Saving in a 403(b) plan is a smart thing to do
A 403(b) plan can be an excellent way to help build retirement security—whether it's your only option for retirement saving, or it's supplementing another retirement account.
403(b) plans have high contribution limits and diversified investment choices.
You're in control. You choose where your money goes and how much you'll contribute (${cf.tokens.retire-acct-limits-cy.erPlanUnderAge} for ${cf.tokens.retire-acct-limits-cy.year}). You'll also have options for how to withdraw your money in retirement.
And if your employer contributes to your plan, your savings get an extra boost!
You may benefit from tax breaks
Like all retirement plans, 403(b) plans offer tax advantages—enabling you to save on taxes now and in some cases later, if your plan offers a Roth option.
Save on taxes now
Contributions are pre-tax, which allows you to postpone your tax bill while you put away money for retirement. Meanwhile, your earnings can continue to grow tax-free until you begin making withdrawals. By then, you may be in a lower tax bracket.*
Save on taxes later
If your plan offers a Roth contribution, your contributions are taxable now, but you get a future bonus—in addition to tax-free growth, you get tax-free withdrawals as long as you've owned your account for 5 years and you're age 59½ or older.
Why choose Vanguard's 403(b)?
Our track record of reliable 403(b) plan management, high-quality, low-cost mutual funds, and convenient account services makes Vanguard the smart choice for employers who want to help employees save for retirement and for employees seeking a trustworthy partner to help them reach their goals.
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Existing plan sponsor | 877-893-5426