10 Questions Every Educator Should Answer About Their 403(b)

Your 403(b)

Do I know who my 403(b) provider is?And do I know whether I own an annuity, mutual funds or another type of investment? Do I know what I'm paying each year?Consider investment expenses, contract or insurance charges, advisory fees and other applicable costs. Does my account have a surrender charge?If so, how much is it today, and when does the surrender period end? Do I know what retirement options my employer offers?Your school district, college or university may offer multiple retirement plans, providers and investment options. Understanding what's available can help you compare costs, investments and features.

Your 457 & contributions

Does my district offer a 457(b)?If it does, understand how it differs from your 403(b) and whether it belongs in your retirement strategy. Do I know where my next retirement dollar should go?403(b)? 457(b)? Roth? Traditional? IRA? The answer depends on your benefits, taxes, goals and retirement timeline. Am I saving enough to reach my retirement goal?Know how much you're currently contributing, whether you're eligible for catch-up contributions and whether your current savings rate puts you on track.

Your pension & the big picture

Do I know what my pension could actually pay me?Understand your projected benefit, retirement eligibility, how different retirement dates could affect your income, and how your payout option affects your spouse or beneficiaries. Do I know how my pension, Social Security and savings work together?Your 403(b) shouldn't be planned in isolation. Your pension, 403(b), 457, Social Security and other investments should work together. Do I know how the person advising me gets paid?Understand whether the person you're working with is acting as an investment adviser, broker, insurance agent or in more than one capacity, and how they are compensated for the recommendations you receive.

Check each question you can confidently answer "yes" to.

How did you do?

8–10 yes

You're asking the right questions.

You have a good understanding of your educator retirement benefits. The next step is making sure everything works together.

5–7 yes

There may be opportunities worth reviewing.

You understand some of your retirement benefits, but there may be costs, investment options or planning decisions you haven't explored.

0–4 yes

It's time to take a closer look.

Don't worry, you don't need to become a 403(b) expert. That's what we're here for.

Want us to review it with you?

Bring what you have to your review:

Your most recent 403(b) statement

Your 457 statement, if applicable

Any annuity contract information you have

Your employer's approved provider list, if available

Your latest pension or TRS estimate, if available

Don't have everything? That's okay. Start with what you have.

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10 questions every educator should be able to answer about their 403(b).