What you need to know about your 401k, 403b, 457b, or TSP

What is a 401(k):

A qualified retirement plan established by an employer to which eligible employees may make salary-deferred contributions. (i. e. contributions are deducted from employee’s paycheck.)

Learn more:
  • Contributions are made from your paycheck before taxes are deducted
  • Employers may make matching or non-elective contributions to the plan
  • Employers may add a profit-sharing feature to the plan
  • Earnings in your 401(k) accrue on a tax-deferred basis



What is a 403(b):

 Also known as a Tax-Sheltered Annuity, this is a retirement plan for qualifying employees of public schools, tax-exempt organizations, and church ministers. Eligible employees may make salary-deferred contributions.

Learn more:
You may have any one of the following account types in your 403(b) plan -

  • Annuity contract - provided through an insurance company
  • Custodial account - invested in mutual funds.
  • Retirement income account - created for church employees, this type of account is usually invested in either Annuities or Mutual Funds
  • ReviewMy401k.com provides 403b advice 

 

 

What is a 457(b):

 A non-qualified, deferred compensation plan established by state and local governments and tax-exempt employers for qualifying employees.

Learn more:

  • Eligible employees are allowed to make salary-deferred contributions to the plan
  • Earnings grow on tax-deferred basis and contributions are not taxed until the assets are distributed from the plan
  • Employers may make matching or non-elective contributions to the plan
  • ReviewMy401k.com provides 457b advice

 

 

What is a TSP:

 

 A retirement savings plan  created by the Federal Employee's Retirement System Act of  1986 for current employees of the federal civil service.

 

Learn more:

  •  The thrift savings plan is a defined-contribution plan
  •  Designed to give federal employees the same retirement savings related benefits that workers in the private    sector enjoy with 401(k) plans
  •  Contributions to the plan are automatically deducted from each paycheck
  •  ReviewMy401k.com provides TSP advice

What is a TSP