Retirement Frequently Asked Questions

For most people, retirement planning is only one part of their larger financial plan, which may also include saving for college or further professional development, securing life insurance or long-term care products, and managing or transferring assets through an estate plan.

Texas K-12 school employees will find that a financial advisor can assist with those long-term objectives as well as short-term goals such as learning how to budget more wisely or navigating summer paycheck gaps. A good place to get started? See our Retirement Planning Resources for School Employees page.

Remember, too, that RBFCU members who are not Texas K-12 school employees are encouraged to explore RBFCU Investments Group.

Yes. K–12 faculty and staff members are welcome to bring a spouse or partner to a meeting with an RBFCU Retirement Program financial advisor. While these financial advisors focus on your employer-sponsored retirement plan, having a partner present can help ensure everyone understands the options available and the decisions being considered.

Note, too, that RBFCU members who are not employees of Texas school districts are always welcome to explore investment and financial planning products, services and strategies through RBFCU Investments Group.

Individuals in search of financial planning strategies and solutions who are not currently employed in K-12 education may wish to visit RBFCU Investments Group, which serves RBFCU credit union members and non-members alike.

Both types of plans are tax deferred, but the 457(b) lets you start withdrawing money from your account as soon as you stop working for the sponsoring employer, no matter your age. In certain situations — such as death, disability or an unforeseen emergency — withdrawals may also be allowed earlier if specific requirements are met.

Meanwhile, 403(b) plans allow standard, penalty-free withdrawals at age 59½, as well as limited early withdrawal exceptions.

With a 403(b), contributions are made pre-tax. Taxes are then paid on withdrawals, typically in retirement when you will likely be in a lower tax bracket. With a Roth 403(b), your contributions are made after taxes have been paid, and then withdrawals taken within the limits of your plan are tax free.

Depending on your district plan, the 403(b) may have a 15-year service catch-up, which can allow up to $3,000 annually for five years. You must qualify every year through your district’s administrator.

This number varies somewhat from year to year, per the Internal Revenue Service (IRS), so it is wise to consult the “Retirement topics” section of their website for the latest information on 403(b) contribution limits.

Yes. If you are still employed, you may transfer your 403(b) between eligible 403(b) providers. If you are no longer employed or otherwise meet a qualifying event, you become eligible to roll funds over to an IRA or other eligible retirement plan.

This number varies somewhat from year to year, per the Internal Revenue Service (IRS), so it is wise to consult the “Retirement topics” section of their website for the latest information on 457(b) contribution limits.

Special catch-up contributions may also be available, depending upon your age.

Both types of plans are tax deferred, but the 457(b) lets you start withdrawing money from your account as soon as you stop working for the sponsoring employer, no matter your age. In certain situations — such as death, disability or an unforeseen emergency — withdrawals may also be allowed earlier if specific requirements are met.

Meanwhile, 403(b) plans allow standard, penalty-free withdrawals at age 59½, as well as limited early withdrawal exceptions.

Depending on your school district’s plan, you may be eligible to contribute an additional amount beyond the standard annual limit to your retirement plan. This catch-up provision is used during the final three years before your retirement age, which is typically defined between age 62 and 65, depending on your district’s plan.