What Does a 403B Have to Do With Mutual Funds?

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A 403B is a retirement savings plan that accumulates money tax-free and can be put into a mutual fund to earn more money. Use a 403B plan to keep employees happy with their retirement plans using advice from a financial consultant in this free video on retirement funds.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Are you a teacher or, perhaps, work in a church and contribute to a pension plan? Hi, this is Roger Groh with Groh Asset Management. Today, we're here to talk about 403b plans -- what they are and how you can use them. If you are a teacher or, in some instances, work in a church, the pension...part of the pension code that enables you to contribute to a pension plan is 403b. It's not unlike 401k for the rest of the working world, but it's just the designation for that portion of the working universe. Now, what can you do in 403b? Well, it really depends upon what...how the plan is written. As an employer, why would you create a 403b account? Well, it will help you retain employees and keep them a little bit happier, knowing that they have a retirement plan and benefit waiting for them at some point in the future. As an employee, why would you want to be involved in 403b? Because it's a great way to save money on a tax deferred basis. Remember, all the money that goes into 403b accumulates tax-free until you begin to take it out. It's a major benefit for you over the longer term. I hope that helps. This is Roger Groh of Groh Asset, and thank you very much for spending time with me.

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