Faculty & Staff

Traditional 403(b) and Roth 403(b) Plans

A 403(b) is potentially one of the best retirement savings vehicles you can have. 

A traditional 403(b) and a Roth 403(b) are defined contribution retirement plans designed for employees of government and tax-exempt groups, such as schools, hospitals and churches. 

Highlights of a 403(b) plan:

Contributions to most 403(b)s are 100% tax deductible. Typically, you just defer a small percentage of your salary into these plans per paycheck, prior to taxes being withheld. You can set the recurring contribution amount, and you can decide how you want the money you contribute to be invested.


403(b)s feature tax-deferred growth. That is, the money invested inside the account has the chance to grow year after year without being taxed. Typically, that money is only taxed when it is withdrawn from the plan. This yearly tax deferral may really help those invested assets grow and compound.


You can contribute up to $19,000 to a 403(b) in 2019. In fact, you can contribute up to $25,000 if you are 50 or older, because the I.R.S. permits additional $6,000 “catch-up” contributions to 403(b)s once plan participants reach that age.

403(b) contributions, combined with any matching funds provided by the employer, cannot exceed 100% of the compensation or $56,000 for the fiscal year 2019.

Some people are eligible for an additional 403(b) contribution known as a 403(b) Lifetime Catch-up.  This special type of 403(b) contribution is only available to employees who have worked for a qualified organization for 15 years or longer.  This is referred to the :15-year rule" (IRS Publication 571).


Your 403(b) plan may even offer a Roth option. As with a Roth IRA, contributions to a Roth 403(b) are made with after-tax dollars. As a result, contributions to a Roth 403(b) are not tax deductible. The trade-off? You have the potential for tax-free withdrawals in retirement so long as you follow I.R.S. rules.    


Can my employer match my contributions? Possibly. If you do receive a match, it will usually equal 50% or 100% of your contribution, up to a certain dollar amount.


Saving and investing for retirement should be on every teacher’s to-do list. The 403(b) gives you an option to do just that, conveniently and consistently. If you aren’t yet saving for the future this way, now is the best time to start.

One of our retirement planning representatives will meet with you to complete the necessary paperwork to set-up your account and answer any questions you might have.

A Member of

Retirement Benefits Council

W.M. Durham Associates LLC

2010 Raymond Diehl Rd., Ste. 102

Tallahassee, FL 32308

Ph:  850-385-3578

Toll Free:  800-396-3420

Fax:   800-372-3220

Email:  info@wmdallc.com

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W.M. Durham Associates LLC is an independent financial services firm that creates retirement strategies using a variety of investment and insurance products.  Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to protection benefits or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  WM Durham Associates LLC nor any of its employees provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.


W.M. Durham Associates LLC is not affiliated with or endorsed by any government agency, including the Florida Retirement System (FRS).

All material should be regarded as general information.​​

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