What is a 403(b)? | 403(b) Explained | Titan



What is a 403(b)? | 403(b) Explained | Titan

Titan's John De Yonker explains 403B retirement funds, how they work, and how they differ from a 401(k). Click to watch this quick explainer video.

Video Transcript

A 403B is a retirement savings account established by nonprofit entities on behalf of their employees. Think hospitals, charities, public schools, government institutions, just to name a few examples of types of workplaces which may offer a 403B. Now, similar to a 401K, money will typically go directly into that 403B account from each paycheck. And in many cases, employers will also provide a match up to a certain percentage of an employee's salary. Now, again, there are some limitations to a 403B. You cannot tap into the money until retirement age, which the IRS has determined to be 59 and a half. If you do, there is a 10% penalty associated. So be mindful there. You can contribute up to $20,500 a year. But investment choices may be a bit bland. There could be some hidden fees. But again, 403Bs, especially with that employer match, are a really great tool to bolster your retirement savings when available to you. 

You might also like

What is Solana? | Solana Explained


What is Ethereum? | Ethereum Explained


What is Bitcoin? | Bitcoin Explained


What is Cryptocurrency? | Cryptocurrency Explained


What is Chainlink? | Chainlink Explained | Titan


What are Stablecoins? | Stablecoins Explained | Titan


What is Cosmos? | Cosmos Blockchain Explained | Titan


Ready to become a client?

It’s time to give your wealth a future.



© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.