Guide 2 of 3 · Your 403(b)
What a 403(b) is, and how it differs from your pension.
Unlike your pension, a 403(b) is a defined-contribution account — what you get out depends on what goes in, how it's invested, and what it costs along the way.
The basics
A 403(b) is the nonprofit and public-education equivalent of a 401(k). You contribute a portion of your paycheck, often with a district match, and the account grows based on how it's invested — not on a fixed formula like your pension.
Because it's a supplement to your pension rather than a replacement for it, the question isn't whether to have one, but whether the one you have is actually working the way you assume it is.
What's worth checking
- What you're actually contributing each paycheck, and whether it's enough to matter by retirement.
- What the underlying investments are, and how much risk they carry relative to your timeline.
- What fees are being charged — account fees, fund fees, and any surrender charges.
- Whether your provider was chosen by you, or is simply whichever vendor your district lists.
Common mistakes educators make
- Signing up during onboarding and never revisiting the account for years, sometimes decades.
- Not knowing what fees are attached, because the statement doesn't spell them out clearly.
- Keeping an investment mix that no longer matches how close they are to retirement.
- Assuming the district-recommended vendor is automatically the best option available.
Educational only. This guide explains general 403(b) concepts. It is not a recommendation to buy, sell, or move any specific product, and it doesn't account for your personal tax situation, timeline, or risk tolerance.
Not sure what's inside your 403(b)?
A complimentary review can help you understand what you actually have.