403b Calculator

Shawn Plummer

CEO, The Annuity Expert

Our journey today takes us into financial planning and retirement savings. Specifically, we’ll dive deep into a powerful tool that could become your best ally in managing your financial future: the 403b calculator.

Now, don’t fret if numbers aren’t your strong suit or if the term ‘403b’ sounds like a distant cousin of R2-D2. I promise to guide you through this terrain in the friendliest, most accessible way possible. Together, we’ll tackle your burning questions about the 403b calculator and help you maximize your retirement savings.

403B Calculator: Estimating Your Retirement Savings

The 403b calculator is an online tool designed to help you project the future value of your 403b retirement plan. It considers your current savings, contribution level, employer’s contribution, expected return, and a few other factors. This gives you a clear picture of what your retirement nest egg could look like when you’re ready to step back from the daily grind.

How It Works

The 403b retirement calculator is relatively straightforward to use. First, you input your current age, expected retirement age, current account balance, annual contributions, and assumed annual rate of return. The calculator then provides you with an estimate of your savings at retirement.

403B Calculator

How Much Should I Be Putting in My 403b?

There’s no one-size-fits-all answer to this question, as it largely depends on your circumstances and retirement goals. However, financial experts generally recommend contributing at least enough to receive your employer’s full match if they offer one. A 403(b) calculator can help you explore different scenarios and find the contribution level that will help you reach your retirement goals.

Finding the Right Balance

The key is to balance your present needs and future goals. Contributing too much could leave you strapped for cash now while contributing too little could mean not having enough when you retire.

The Average Return on a 403b

Again, the average return on a 403b tax-sheltered annuity varies depending on various factors, including the specific investments within the plan. Historically, the long-term average return for the U.S. stock market is around 7% to 10% per year after adjusting for inflation. However, your actual return could be higher or lower, depending on your circumstances and the market conditions.

Maximizing Your Returns

Diversifying your investments and regularly reviewing your portfolio are critical steps to increase your returns potentially.

403B Retirement Calculator

How Much Can You Contribute to a 403b Per Paycheck and Year?

As of 2023, the IRS allows you to contribute up to $22,500 per year to your 403b plan. In addition, if you’re 50 or older, you can make additional “catch-up” contributions of up to $7,500. Of course, how much of this you decide to contribute per paycheck will depend on your income, expenses, and personal savings goals.

Making the Most of Your Contributions

Remember, the more you contribute now, the larger your retirement nest egg can potentially be, thanks to the power of compound interest. First, however, balancing your contributions with your current financial needs is crucial.

403 B Employee Savings Plan

Next Steps

Retirement planning can feel daunting, but with tools like the 403b calculator, it doesn’t have to be. The calculator is a powerful ally that can help you answer critical questions and make informed decisions about your retirement savings. Remember, it’s not just about saving; it’s about saving smart. The more you understand and use these tools, the more confident you can be about your financial future.

Helpful Tool: 403b Withdrawal Calculator

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Frequently Asked Questions

What are the disadvantages of a 403b?

Comella says taking early withdrawals from a 403(b) account before age 59 1/2 could result in taxes and early withdrawal penalties, which would add to your expenses. This is because the plan is designed for retirement savings.

Is 403b better than 401?

401(k) plans generally offer more investment options with better quality but are also more expensive for the company than 403(b) plans. In addition, while both plans offer employer matching, 403(b) plans are less likely to provide this benefit.

Is contributing to a 403b 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 403b 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.

Does my money grow in 403b?

The Traditional 403(b) retirement plans use pre-tax money, and the amount grows tax-deferred. This implies that while you won’t pay tax on the money now, you will be charged tax when withdrawing the money after retirement.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

Scroll to Top