403(b) Calculators

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

403(b) Calculators

Our 403(b) calculators are designed to simplify retirement planning. The 403(b) Savings Calculator lets you see how your retirement savings might grow over time. Just enter your contributions, any employer matching, and your expected annual returns, and you’ll get a clear picture of how your funds could increase. Meanwhile, our 403(b) Payout Calculator uses annuities to show how much guaranteed lifetime income you can receive in retirement.

403(b) Growth Calculator

Our 403(b) Growth Calculator is designed to give you a detailed forecast of how your investments will increase over time based on your starting balance, how often you contribute, and the interest rates you expect. This tool helps you make smart choices and tweak your savings plan to reach your financial targets effectively.

Just enter your annual salary, the percentage you’d like to contribute, any expected salary increases, your current age, the age you plan to retire, and the anticipated rate of return. Don’t forget to include any employer matching if it’s available. The calculator will then display your estimated savings total by the time you reach retirement.

403B Calculator

403(b) Payout Calculator For Retirement

Our 403(b) retirement calculator uses annuities to provide precise figures, not just estimates, to help you plan your retirement income. We use annuities with Guaranteed Lifetime Withdrawal Benefits to determine the monthly payout because they contractually guarantee payment for the rest of your lifetime. This automates your income during retirement, relieving the stress of worrying about running out of money before you die. Any remaining balance you have will be passed down to your beneficiaries.

To use the calculator simply:

  1. Enter your age.
  2. Input your resident state.
  3. Input your current 403(b) balance,
  4. When would you like to collect your 403(b) payout (Start My Benefits)?
403B Retirement Calculator

403(b) Basics

What It Is

A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement savings plan similar to a 401(k) that is available to employees of public schools and certain tax-exempt organizations.

Who Is Eligible

403(b) plans are specifically designed for employees of:

  • Public schools, colleges, and universities
  • Churches and church-related organizations
  • Charitable entities that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code

How Contributions to a Tax-Sheltered Annuity Are Treated

Taxation on Withdrawals: Withdrawals from a TSA are taxed as ordinary income. If funds are withdrawn before age 59½, they may be subject to a 10% early withdrawal penalty, in addition to regular income tax, unless an exception applies.

Pre-Tax Contributions: Contributions to a TSA are typically made through payroll deductions and are taken out before federal (and often state) income taxes are calculated. This reduces the employee’s taxable income for the year in which the contributions are made.

Tax-Deferred Growth: The investments within the TSA grow tax-deferred, meaning that investment earnings (such as interest, dividends, and capital gains) are not taxed until the money is withdrawn from the account.

What Are The Contribution Limits

The IRS sets annual contribution limits for 403(b) plans, and these limits can change yearly. For the year 2024, the general contribution limit is $23,000. However, if you’re aged 50 or older, you can make catch-up contributions—an additional $7,500, bringing your total contribution limit to $30,500.

403(b) Withdrawal Options

You can begin withdrawing from your 403(b) plan without penalties when you reach the age of 59½. Withdrawals taken before this age are subject to a 10% early withdrawal penalty in addition to being taxed as regular income.

Upon retirement, you typically have several options for withdrawing from your account:

  • Lump-Sum Distribution: Receive your entire account balance at once.
  • Regular Installments: Schedule regular withdrawals (monthly, quarterly, etc.) based on your personal financial needs.
  • Annuities: Convert your balance into an annuity, which provides regular payments for life or a specified period.
403B Growth Calculator

How We Can Help

You’ve worked hard to save for retirement, and ensuring those savings last is a top priority. The Annuity Expert is here to help you navigate your 403(b) and make the most of your retirement funds. We understand the complexities and challenges you face, from understanding the best ways to grow your savings to making the right decisions about withdrawals.

Common Challenges:

  • Understanding Investment Options: Choosing the right funds can be overwhelming.
  • Planning Withdrawals: Knowing when and how to withdraw can impact your financial stability.
  • Maximizing Employer Contributions: Not taking full advantage of employer matching can leave money on the table.

Our Expertise: With over 15 years as an insurance agency, annuity broker, and retirement planner, we have the knowledge and experience to help you succeed. We believe in finding the best solutions at the lowest costs, ensuring you get the most value from your 403(b).

403B Savings Calculator

What We Recommend

Step 1: Initial Consultation

  • What Happens: We’ll start by reviewing your current 403(b) retirement goals and financial situation.
  • Main Benefit: Gain a clear understanding of where you stand and what steps are needed to achieve your retirement goals.

Step 2: Personalized Plan Development

  • What Happens: Based on your unique needs, we’ll develop a tailored retirement strategy that includes optimal investment choices, withdrawal plans, and tax considerations.
  • Main Benefit: Receive a customized plan designed to maximize your savings and ensure financial security in retirement.

Step 3: Ongoing Support and Adjustments

  • What Happens: We’ll provide continuous support, monitoring your plan and making adjustments as needed to respond to market changes or life events.
  • Main Benefit: Enjoy peace of mind knowing your retirement strategy is being managed by experts committed to your success.

Features and Benefits:

  • Personalized Quotes: Tailored to your individual needs and preferences.
  • Expert Advice: Leverage our extensive knowledge to make informed decisions.
  • Continuous Monitoring: Ensure your plan adapts to changing circumstances.
  • Maximized Savings: Optimize contributions and withdrawals for the best financial outcomes.

Overcoming Objections:

  • Concern: “I don’t understand the investment options.”
    • Response: We simplify the process and provide clear recommendations.
  • Concern: “I’m not sure when to start withdrawals.”
    • Response: We’ll create a detailed withdrawal plan tailored to your needs.
  • Concern: “I want to avoid high fees.”
    • Response: We focus on finding cost-effective solutions that maximize your savings.

Failing to plan effectively for your 403(b) can lead to missed opportunities and financial insecurity. Working with The Annuity Expert ensures your retirement is as secure and prosperous as possible. You’ll experience the peace of mind that comes from knowing your future is in good hands.

Contact us today for free advice or a quote and take the first step towards a secure and fulfilling retirement.

Need Help With Your 403(b) Plan

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Frequently Asked Questions

Is contributing to a 403(b) worth it?

A 403(b) plan can be a great retirement option if you work for a nonprofit organization. It works like a 401(k) plan and offers several benefits, including tax deductions and exemptions, the opportunity to have a Roth IRA and different catch-up contribution limits. Additionally, some employers may also offer a matching contribution.

How much should you have in your 403(b) by age 30?

To achieve financial stability, saving a specific amount based on age and income is advisable. By turning 30, aim to save an amount equivalent to your yearly earnings. For instance, if your annual income is $50,000, save $50,000 for retirement. By age 40, the target should be to save three times your annual income; by age 50, you should aim to save six times your yearly salary.

How does a 403(b) grow?

The Traditional 403(b) retirement plans use pre-tax money, which grows tax-deferred. This implies that while you won’t pay tax on the money now, you will be charged tax when withdrawing it after retirement. A Roth 403(b) uses money that has already been taxed. It is not taxed when withdrawing it after retirement.

How much should I have in my 403(b) to retire?

A common rule of thumb is to aim for a retirement fund that is 10-12 times your final salary. For example, if you expect to retire on an annual income of $50,000, you should aim for $500,000 to $600,000 in your 403(b)

How much should I put in my 403(b) each month?

The amount an individual should contribute to their 403(b) retirement account each month depends on factors such as income, financial goals, and age. Generally, financial advisors recommend contributing 10-15% of one’s income towards retirement. To determine the specific amount, it is advisable to consult with a financial professional who can assess the individual’s unique circumstances and make recommendations tailored to their needs.

What is the average rate of return on 403(b)?

The average rate of return on a 403(b) retirement plan can vary depending on various factors, such as the investment options chosen and market conditions. However, historically, the average rate of return on a 403(b) has been around 5-8%.

What are the contribution limits for a 403(b) plan?

As of 2024, you can contribute up to $23,000 per year. In addition, if you’re 50 or older, you can make additional “catch-up” contributions of up to $7,500.

Can I roll a 403(b) into an IRA without facing tax penalties?

Yes. You can roll over a 403(b) into an IRA or an IRA annuity without any tax implications.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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