Background
A 403(b) plan is a tax deferred retirement savings plan similar to a private company 401(k) plan. 403(b) plans are available to governmental and public school employees. The 403(b) designation refers to the section in the Internal Revenue Code.

Benefits
Participating in your employer’s 403(b) plan allows you to save for retirement on a tax deferred basis. Contributions are voluntary and you choose the amount based on your retirement goals. Your contributions are deducted from your paycheck before taxes, thereby reducing your taxable income, which may reduce the federal and state income tax you pay each year. (These deductions are still subject to FICA (social security) tax.)

Your balance and earnings grow tax deferred until you take the money out at retirement. At that time, both your contributions and earnings are taxed as income. You are always 100% vested in your own contributions and earnings!

403b Plan Participants:

> Click here to access MidAmerica forms or go to your Spokeskids website.