Interested in finding out more about a 403(b) plan or a Roth? A 403(b) is a tax-deferred savings plan for educators. Adding a 403(b) to your retirement plan can help you secure a future. A Roth is a retirement savings account offering tax benefits. Unlike traditional IRA's contributions are made with after-tax income, but withdrawals in retirement are tax-free. Franklin Pierce School District works with several financial institutions to set up your 403(b).
For participating financial institutions:
WA Department of Retirement Services
What is a pension plan?
A pension is a type of retirement plan that provides monthly income after you retire from your position. The employer is required to contribute to a pool of funds invested on the employee’s benefit. As a Franklin Pierce employee, you contribute part of your wages to the plan, too. The type of pension that Franklin Pierce has is a 401(a). If you are eligible for retirement you cannot opt out, it is a requirement.
DRS has several webinars available that can help you prepare for retirement. Whether you are new to DRS or close to retiring, there is a webinar for you!
Deferred Compensation Plan
Is a DCP right for you?
DCP Roth Now Available Through DRS
With the DCP Roth option, your contributions are deferred from your already taxed income. Roth withdrawals, including any investment earnings, are not taxed if you meet the minimum qualifications. These include a five-year holding period from the year of your first contribution and a minimum age of 59½. If you withdraw before meeting these, any investment earnings will be taxed.