Thursday, June 2, 2016
Tax-Deferred 403(b) Retirement Plans for Education Employees
Based in New York with a presence spanning the East Coast, Aegis Capital Corp. is a well-established broker-dealer that utilizes proprietary analysis in providing integrated institutional and retail services. Within a retail setting, Aegis Capital Corp. handles a wide range of IRA plans, as well as 403(b) retirement planning.
Employees of educational institutions and certain nonprofit organizations can access the 403(b) as a tax-deferred strategy of saving money for retirement. Unlike formula-based pensions, where retirement payout reflects set factors, from salary to years of service, 403(b) plans are self-directed and voluntary. Payouts thus reflect the amount of money that has been allocated into the vehicle by the employee.
While 403(b) plans can be self-standing, they are traditionally designed as a way of supplementing 401(k) pensions. It pays to shop around for the right provider, as they are not as strictly regulated as their defined-benefit cousins. Finding a low-fee provider can be essential in maximizing the benefits accrued from this type of retirement plan.