403(b) & 457(b)
What are 403(b) and 457(b) workplace retirement plans?
403(b) and 457(b) plans provide a convenient and automatic way to save for retirement and are designed for certain employers like schools, nonprofits and governments. The plans are similar to 401(k) retirement plans at for-profit companies.
What Are the Benefits?
Tax-Deferred Earnings
Any earnings grow tax deferred and are taxed at your ordinary income tax rate at the time of withdrawal.
Higher Contribution Limits
The annual contribution maximum is higher than for IRAs.
Investment Control
You and your employer contribute, but you get to choose your own investments for your retirement plan. Your salary deferral money is always yours, even if you change jobs.
No Loads
You won’t pay any up-front or back-end sales charges* on American Century’s no-load mutual funds.
Guidance at No Additional Cost
Get personal assistance from a dedicated team of Business Retirement Specialists.
How Do I Enroll in My Plan?
2. Review Documents
Read the 403(b) Custodial Agreement or 457(b) Custodial Agreement (as applicable) for information about services, expenses and fees.
3. Choose Contributions and Beneficiaries
Complete a Salary Reduction Agreement and return to your benefits or payroll office. Complete a Designation of Beneficiary form and return to us.
Ready to Invest?
Start your 403(b) or 457(b) account application now and choose your investments. Call 1-800-345-3533 if you need help.
Both load and no-load funds have an expense ratio, which is the amount (%) of total investment that shareholders pay annually for mutual fund operating expenses and management fees. The expense ratio is taken out of each fund's current income, is disclosed in the prospectus and can be located on performance tables for each fund.
Limits listed are for 2024. The IRS sets limits annually.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice regarding investment, accounting, legal or tax matters. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.
IRA investment earnings are not taxed. Depending on the type of IRA and certain other factors, these earnings, as well as the original contributions, may be taxed at your ordinary income tax rate upon withdrawal. A 10% penalty may be imposed for early withdrawal before age 59½.
Please consult your tax advisor for more detailed information regarding the Roth IRA or for advice regarding your individual situation.
Taxes are deferred until withdrawal if the requirements are met. A 10% penalty may be imposed for withdrawal prior to reaching age 59½.
You could lose money by investing in a mutual fund, even if through your employer's plan or an IRA. An investment in a mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.