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The Roth 401(k)/403(b) Contribution Option

Roth 401k 403b Contribution Options

Posted: Nov 30, 2015 | Author: | Comments: 0

Beginning in 2006, some employers began offering a Roth contribution option to employees who participate in the employer’s 401(k)/403(b) plan. This unique option allows the participant to make after-tax contributions to the plan, later taking the contributions and associated earnings completely tax-free at retirement if the withdrawal is a qualified one. To qualify, the withdrawal must be taken five tax years after the year of the first Roth contribution and the participant being age 59½ or older, becomes disabled or dies.

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Enrolling in a 403b Plan

Enrolling in a 403b Plan

Posted: Nov 19, 2015 | Author: | Comments: 0

CalSTRS and CalPERS members will enjoy the benefits of their pension upon retirement. This type of retirement plan provides a set amount of income each month for the retired employee. With a defined benefit plan, the employer and employee contribute a specified amount to the plan. Currently, employers contribute 8.25 percent to CalSTRS and the employee contributes 8 percent of his or her creditable compensation.

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What is a 403(b) and Why Is It Important?

What is a 403(b)

Posted: Nov 11, 2015 | Author: | Comments: 0

A 403(b) is a special type of retirement plan that is available to some employees of public schools, tax-exempt organizations and ministers. The 403(b) gets its name from the section of the IRS tax code that oversees it. If you are looking for an excellent way to save money for your retirement, the 403(b) is a great choice. This type of plan can serve as a supplement to a defined benefit plan like a pension. The 403(b) can also stand on its own as a single retirement plan.

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California State Teachers’ Retirement System Is Grossly Underfunded

California State Teachers Retirement System Is Grossly Underfunded

Posted: Nov 02, 2015 | Author: | Comments: 0

According to a recently released Legislative Analyst report, the California State Teachers’ Retirement System is currently suffering $73 billion in unfunded pension debt. It seems that because of this staggering number, CalSTRS is attempting to use doubtful figures to minimize the debt by not accounting for expenses that it should be accounting for. Instead, it is pushing these expense off into the future, creating unfunded liability.

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403(b) vs 401(k)

Posted: Oct 15, 2015 | Author: | Comments: 0

Both 401(k) and 403(b) plans are considered employer-offered, tax-advantaged retirement options. 401(k) and 403(b) plans are similar in some ways. For example, both have the same contribution limits, both offer Roth options and both require participants to reach age 59.5 before money can be withdrawn from the plans...

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