403(b) Savings Calculator
What is a 403(b) Plan?
A 403(b) plan is a tax-sheltered retirement savings plan available to employees of public schools and certain non-profit, tax-exempt 501(c)(3) organizations[attached_file:1]. Similar to a 401(k), it allows employees to contribute a portion of their salary to a retirement account, where the funds can grow tax-deferred until withdrawal.
How This Calculator Works
This tool projects the future value of your 403(b) account by compounding your savings annually. It accounts for your current balance, your annual contributions, expected salary increases, and the powerful boost of an employer match. The calculation continues year by year until your specified retirement age, giving you an estimate of your total nest egg.
Frequently Asked Questions (FAQ)
What is the difference between a 403(b) and a 401(k)?
The primary difference is the type of employer that offers the plan. 401(k) plans are offered by for-profit companies, while 403(b) plans are for employees of non-profit and government entities[web:66]. While they function similarly, their investment options can sometimes differ.
What are the 2025 contribution limits for a 403(b)?
For 2025, the IRS limit for employee contributions is **$23,500**. If you are age 50 or over, you can contribute an additional **$7,500** as a "catch-up" contribution, for a total of $31,000[web:65].
What is an employer match?
An employer match is a significant benefit where your employer contributes to your 403(b) account alongside you, often by matching your contributions up to a certain percentage of your salary. It's essentially free money that dramatically accelerates your retirement savings[attached_file:1].