How to Withdraw from a 403b Plan

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Can You Withdraw from a 403b?

Yes, you can withdraw from a 403b plan. However, there are specific rules and conditions that apply. These include:

  1. Age Restrictions: Withdrawals can be made without penalty after age 59½. Earlier withdrawals may incur a 10% penalty.
  2. Required Minimum Distributions (RMDs): At age 73, you must start taking RMDs.

Helpful Tool: 403b Monthly Payout Calculator

How To Withdraw From 403B

Using Guaranteed Lifetime Withdrawal Benefits

  1. What is It?: A Guaranteed Lifetime Withdrawal Benefit (GLWB) is an insurance product that can be added to a 403b. It ensures a steady income stream for life.
  2. Benefits: GLWB provides income stability and protects against market downturns.
  3. Considerations: There are fees associated with GLWB. It’s essential to understand the costs and benefits.
Can I Withdraw From My 403B

Maximizing 403b Withdrawals in Retirement

  1. Strategic Withdrawals: Plan withdrawals to minimize taxes. Consider the tax implications of withdrawing large sums.
  2. Diversify Income Sources: Combine 403b withdrawals with other income sources like Social Security or pensions.
  3. Monitor Investment Performance: Regularly review and adjust investments to ensure they align with retirement goals.

Helpful Tool: 403b growth calculator

Can You Withdraw From A 403B

403b Withdrawal Strategies

Age RangeStrategyBenefit
Under 59½Avoid early withdrawalsDodge 10% penalty
59½ to 72Controlled withdrawalsManage taxes, preserve funds
73 and upRMDs and GLWBComply with IRS, steady income
When Can You Withdraw From A 401K


Withdrawing from a 403b plan requires understanding the rules and using strategies like GLWB for a stable income. Strategic planning ensures financial security in retirement without running out of money. Contact us today for a free quote.

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Questions From Our Readers

Can I withdraw all of my 403b funds at once

Yes, you can withdraw all your 403b funds at once, but this can result in a large tax bill. It’s usually better to withdraw the funds gradually over time to minimize the tax impact.

Can I change my withdrawal rate with an annuity’s guaranteed lifetime benefit?

You can usually change your withdrawal rate with an annuity’s guaranteed lifetime benefit. However, there may be restrictions or fees associated with changing your rate, so check the terms of your annuity contract.

Are there any downsides to using an annuity’s guaranteed lifetime withdrawal benefit?

While an annuity’s guaranteed lifetime withdrawal benefit can be beneficial, there are some downsides. Annuities can be complex and expensive, and there may be fees and restrictions associated with the product. Additionally, the returns on annuities are generally lower than other investments, so it’s essential to consider the trade-offs between guaranteed income and potential investment returns.

How do you withdraw the balance from your 403(b) annuity?

To withdraw the balance from your 403(b) annuity, first review your plan’s terms for any fees or restrictions. Then, contact your plan administrator or financial institution to get the necessary withdrawal forms. Fill out these forms, keeping in mind that withdrawals are typically subject to income tax, and if you’re under 59½, you might also face a 10% early withdrawal penalty. Submit the completed forms and the funds will be processed and disbursed according to your chosen method.

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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