The 403(b) is a great way for public employees to save for retirement. It's similar to the 401(k) offered in the private sector.
Our 403(b) program has been nationally recognized by Forbes magazine and the Los Angeles Times as a low cost, soundly managed retirement savings option for Wisconsin public school employees.
Roth vs Traditional
403(b) contributions can be before-tax or after-tax (Roth) or a combination of the two.
Roth contributions are taxed now, but qualified withdrawals, including earnings, are tax-free. When you retire, you owe nothing on years of compounded earnings which may be a significant amount.
Before-tax contributions reduce your taxable income and payment of the taxes is deferred until you withdraw the money. Withdrawals are taxed as ordinary income.