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Take Advantage of Tax-Deferred Savings in your 403(b) Retirement Plan

When investing for retirement, tax-deferred products like 403(b) plans give you a powerful, tax-efficient way to build future savings. Through the Johns Hopkins University Retirement Plans, you're eligible to contribute to a 403(b) Plan, which offers these advantages:

  • A great way to maximize your retirement savings: With increases in life expectancy and health care costs, you may need more money in retirement than you think. Opening a 403(b) account can be an effective way to supplement your pension plan or university contributions to your retirement plan—and build the savings you'll need to reach your long-term goals.
  • Convenient contributions: Contributions are automatically deducted from your salary, making it easy to save.
  • An opportunity to reduce current taxes: You make contributions before taxes are withheld from your paycheck, reducing your current taxable income.
  • Tax-deferred accumulations: You don't pay taxes on contributions or earnings until you receive them in retirement.*
  • Potential for greater growth: Since earnings in your account grow tax deferred, they may accumulate faster than money you'd have in an after-tax investment, such as a taxable mutual fund. The sooner you get started, the longer those contributions have to grow.

If you already have a 403(b) account, consider increasing your contributions. In 2011, you can contribute up to $16,500—or up to $22,000 if you're age 50 or older. If you haven't opened a 403(b) account, learn more about the benefits these plans offer at www.benefits.jhu.edu/retirement.

* Withdrawals prior to age 59½ are generally subject to a 10% penalty tax, in addition to ordinary income tax.

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