A Florida 403(b) is a section of the IRS code in which a tax shelter is created for the investor. It allows teachers and non-profit organization employees like church personnel the ability to deposit a portion of his or her salary on a pre-tax basis into a retirement account. The monies that are deposited are placed into an investment vehicle, like a mutual fund or an annuity, usually through salary reduction. Tax is deferred until the funds are withdrawn. Unlike a Roth IRA, taxes are paid on both the amount deposited and the gains that were credited to the account through the years. This is commonly done at retirement.

Some annuities are less riskier than others. You have two choices, a variable or fixed annuity. With the variable annuity, your money is invested into the stock and/or bond market like a mutual fund. Your money in a fixed annuity is not invested directly in the stock market. Your funds are placed into a life insurance carriers general fund. They invest in high-grade bonds and you earn a guaranteed and reliable interest rate for a period of years.

I am well versed in teacher retirement planning, especially the Florida 403(b). If you contact me, I can perform a free needs analysis for you and recommend a carrier or account that best suits your individual needs. Happy saving.