457(b) & 403(b) Savings Plans
Research shows that Americans are living longer and their number of years in retirement is increasing. While your TRS pension may be enough to cover expenses during your initial retirement years, the reduced monthly income may not be sufficient for costly factors such as medical bills, taxes, and your desired standard of living. Contributing to a retirement savings plan can help supplement your pension during retirement.
Choosing to save with a 457(b) and/or a 403(b) allows you to save money in a pre-tax (Traditional) or after-tax
(Roth) account. Contributions to the plan are salary-deducted from your paycheck and automatically deposited
into your account. You may start and stop contributions at any time.
457(b) Savings Plan
- Employer-sponsored plan with oversight by TCG Advisors and a committee of Superintendents/CFO’s.
- High-quality, low fee investment options.
- No commissions.
- No federal penalties to withdraw funds from account. Income tax still applies.
- Choose between target date funds, risk-based portfolios, or self-directed mutual funds.
403(b) Savings Plan
- Multi-vendor plan. You must research from a list of 50+ vendors and decide the best fit for you.
- Fees and investment options vary per vendor.
- Commissions vary per vendor.
- 10% early withdrawal penalty (goes away at age 59 1/2 or age 55 if retired).
- Investment options vary by vendor, including fixed/variable annuities and mutual funds.