What is a 403(b) plan?

A 403(b) is a special retirement plan that your employer (school district) offers to help you save for the future.
It gets its name from the section of the tax code that talks about it.
With a 403(b) plan, you can set aside a portion of your paycheck specifically for retirement savings.

In the CTA program, you have two choices for saving: pre-tax or after-tax (ROTH).
Pre-tax contributions are taken out of your paycheck before taxes are taken out, which can lower your taxable income.
After-tax (ROTH) contributions are made with money that has already been taxed. Not all school districts allow after-tax contributions, though, so you'll need to check if it's available in yours.

While your state pension is automatically deducted from your paycheck, the 403(b) plan is optional.
That means you have to decide to sign up for it and start putting money into it yourself. Even though it's optional, we believe that most educators should consider contributing to a 403(b) plan to supplement their state pension.

By participating in a 403(b) plan, you can take control of your retirement savings and have more financial security for the future. It's a great way to make sure you're putting aside money for retirement and building a strong financial foundation.