What is a 403(b)?

403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers. Individual accounts in a 403(b) plan can be any of the following types.


Who is a 403(b) for?

403(b) is a retirement plan established for the benefit of employees of public schools and certain tax-exempt organizations. These plans accept payroll-deducted contributions for participant-directed investing and are intended to help the employees meet long-term objectives, such as generating retirement income.

Employees of tax-exempt organizations are eligible to participate in the plan. Participants include teachers, school administrators, professors, government employees, nurses, doctors and librarians. A TSA is another funding source for retirement in addition to a retirement plan or pension that helps employees meet their retirement goals. Many plans vest funds over a shorter period than 401(k) plans or may allow immediate vesting of funds. ~ Investopedia

Can You Take Money Out of a 403(b)?

All distributions from your before-tax 403(b) account are taxed as regular income.You may take tax-free withdrawals from your Roth 403(b) account without early withdrawal penalties if you have held the account for five years AND one of the following: Reached age 591/2.

Types of Gold You Can Invest in With a 403(b)

403(b) plans offer more investment options than they used to, however still have limitations.

Though your options may be limited, some 403(b) plans are eligible to include:

  • fixed, equity indexed and/or variable annuities
  • individual stocks and bonds
  • mutual funds
  • exchange-traded funds (ETFs)

Does Gold and Precious Metals Qualify for 403(b)? Retirement Plan Contribution Chart