money sectionmoney sectionA 403b plan is a type of retirement account available only to certain types of employees, mainly public school employees and nonprofit employees. Like a traditional 401k, employees can contribute pretax dollars to their traditional 403b plans, and income taxes are charged in the year funds are withdrawn from the account. Employees earmark contributions to their 403b for particular investments. If the account holder makes wise investments, his retirement funds will grow; if he makes poor investments, however, he may lose money. You can claim losses from a 403b plan if you liquidate the account and pay tax penalties.
A 403b account is a special retirement account. These accounts are only open to teachers and non-profit employees. The account allows you to make pretax or after-tax contributions. In exchange, you get tax-free growth on the money in the plan. But, what about investment losses? Investment losses are a very real possibility in a 403b plan. You have a way to write off these losses, but you must understand the process.
Being dissatisfied with an employer's retirement plan investment options or service is frustrating. Many employees feel there is little they can do other than bide their time and wait until the day they can roll the assets out into a self-directed IRA. However, as a 403b plan participant, you are allowed to make in-service transfers from one authorized administrative broker to another under certain circumstances.
The 403b accounts are retirement plans offered by non-profit organizations like charities, universities and certain medical institutions. These accounts are governed by similar laws to the 401k, the equivalent account for corporations. You may transfer the funds and securities in a 403b account into a similar retirement plan such as an IRA, 401k, or 457 plan without paying any tax penalties. Many 403b plan providers charge account termination fees, so take those into consideration when transferring your account.
