Retirement Planning and 403b Accounts
You have no doubt heard of a 401k retirement plan account, but you may not have ever heard of a 403b account. The main reason is this is the type of retirement planning opportunities that are afforded to people who are employed by not for profit organizations. This includes school teachers and employees of public school districts, such as nurses, researchers, librarians and ministers. Schools are tax exempt organizations, and only these tax exempt organizations, are eligible to offer their employees this particular retirement option. The people who belong to these plans are limited in the amount they are allowed to deposit each year.
There is an elective deferral limit that is set at $15,500 dollars per year per employee. If the employer matches the amount the employee deposits the employer may deposit an additional $30,500 into the account each year. This depends on the match or double clause that is in the contract between employer and employee. Not all employees of these types of companies will be eligible to participate in the 403b retirement accounts programs. If an employee is part time and earns less than two hundred dollars a year at the company then they will not be eligible to participate. You can learn a lot more about eligibility and retirement planning options by reading some of the informative articles on the internet on the subject. Knowledge is power and freedom. We cannot have the freedom to live the life we want to live if we do not have the power to change our circumstances. Luckily we are all given the choice to decide how and when we will make our money, and what we will do with the money we make. If we set our minds to reaching a goal of available cash before we quit working then we can reach that goal. The resourcefulness of the human being is undoubtedly one of the major differences between us and the animals. Think carefully about what the future holds for you and what you want the future to hold for you. Right now you hold all of the cards that will determine if the later years of your life will be a time of feast or famine.