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  • What is a 403(b)?

A 403(b) plan works in a very similar way to a 401(k), but it is generally only available to employees of certain nonprofit entities, universities, or public schools.

  • Who makes contributions to my plan?

You make pre-tax contributions to your plan through automatic payroll deductions. Some employers make matching contributions up to a certain percentage. Your contributions are optional, but you’ll want to contribute at least as much as your employer’s match to take advantage of this “free” money.

  • What is a catch-up contribution?

If you are age 50 or older, you may be able to make additional annual pre-tax contributions. If you weren’t able to save earlier in life, utilizing the catch-up provisions may be a way for you to save more.

  • What if my employment ends with my employer where I have a retirement savings?

You own your salary deferrals and any plan earnings on those deferrals. If your employment ends for any reason, the money is yours to take with you. Company contributions may or may not be yours depending on your plans vesting schedule. By transferring your eligible “roll-over distribution” to an IRA or your new employer’s 401(k)/403(b) plan, you can continue deferring taxes and growing your retirement savings until you make withdrawals.

  • How much can I save with my plan?

This depends on how much money you and employer contribute to your account, when you retire, and what your year to year investment returns are. There is no guarantee of any investment return. It depends on market conditions and the level of risks you take with your investments.

Sawtelle Financial Management, LLC . 1250 NE Loop 410, Suite 350. San Antonio, TX 78209. Office: 210-822-5252. Fax: 800-615-9059