RBFCU Retirement Program
Plan your future with more confidence
You’ve dedicated your life to helping others advance their futures. Let us help you build yours. The RBFCU Retirement Program offers solutions exclusively to Texas school district faculty and staff. Not a K-12 school employee? Visit RBFCU Investments Group.
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Supplement Your TRS Pension
Since 2018, our financial advisors have offered retirement planning solutions (e.g., Traditional and Roth 403(b) plans) solely to RBFCU members and non-members employed in the education sector.
Most of them initially turn to us for solutions to help them supplement their Teacher Retirement System (TRS) pension savings.
Address Your Financial Goals
Beyond preparing for retirement, do you have other financial goals, such as stretching your paycheck, buying your first home or funding professional development endeavors?
Our experienced financial advisors can help you identify strategies to address those objectives, too.
Grow More Financially Savvy
Through our resource articles and webinars, we provide K-12 educators and staff with insights into financial planning, budgeting and advancing fiscal goals.
Plus, we can bring our informative retirement presentation to your campus for your team and colleagues.
Welcome to the RBFCU Retirement Program
Why we serve Texas K-12 school employees
“Teachers, coaches, administrators, maintenance crews and support staff work hard to serve students. Yet, throughout their careers, they face unique challenges when it comes to saving for retirement. After all, TRS plans may only meet a fraction of their financial needs during retirement. We’re honored to help school employees create clearer paths to their futures.”
Terence F. Powell, Jr., AIF®
Investment Program Manager
In Texas, every school district offers the option of 403(b) retirement plans to educators, administrators and staff. Some may also offer 457(b) plans. With the help of our drop-down chart, you can explore the two types of retirement plan products available to K-12 employees through the RBFCU Retirement Program. Questions about your options? Contact us.
Compare 403(b) and 457(b) plans
Traditional 403(b)
At-a-glance
• Tax-sheltered plan
• Pre-tax contributions
• Reduces taxable income
• Taxes deferred until funds are withdrawn
Overview
A Traditional 403(b) is a tax-sheltered plan that allows employees of educational institutions and certain tax-exempt organizations to save pre-tax dollars for retirement.
It works much like a Traditional 401(k) in terms of taxes and loans and can offer another way to save for retirement.
Taxes
Contributions are made to your 403(b) before taxes are taken from your paycheck, reducing your taxable income. Taxes are paid on withdrawals, typically in retirement.
Withdrawals
You may make a withdrawal from your 403(b) at age 59½, upon severance from employment, or in the case of hardship, disability or death. These distributions are taxable at current tax rates as ordinary income. Penalties may apply to withdrawals taken before the allowable age.
Loans
If the plan allows, a loan may be taken against your 403(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply.
Roth 403(b)
At-a-glance
• Tax-sheltered plan
• After-tax contributions
• Does not reduce taxable income
• Earnings grow tax-free, with conditions (see below)
Overview
A Roth 403(b) is a tax-sheltered plan that allows employees of educational institutions and certain tax-exempt organizations to save post-tax dollars for retirement.
It works much like a Roth 401(k) in terms of taxes and loans and can offer another way to save for retirement.
Taxes
Contributions are made to your Roth 403(b) after taxes are taken from your paycheck, allowing your earnings to grow — and withdrawals to be taken — tax-free if the account has been open for at least five years, and you are age 59½ or older. Roth 403(b) money is subject to required minimum distribution rules.
Withdrawals
You may make a withdrawal from your Roth 403(b) at age 59½, upon severance from employment, or in the case of hardship, disability or death. Penalties may apply to withdrawals taken before the allowable age.
Loans
If the plan allows, a loan may be taken against your Roth 403(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply.
Traditional 457(b)
At-a-glance
• Deferred compensation plan (DCP)
• Pre-tax contributions
• Reduces taxable income
• Taxes deferred until funds are withdrawn
• Offered by some (but not all) Texas school districts
Overview
A Traditional 457(b) is a DCP that allows employees of educational institutions and certain tax-exempt organizations to save pre-tax dollars for retirement.
It works much like a Traditional 403(b) plan in terms of taxes and loans and can offer another way to save for retirement.
Taxes
Contributions are made to your 457(b) before taxes are taken from your paycheck, reducing your taxable income. Taxes are paid on withdrawals, typically in retirement.
Withdrawals
Regardless of age, you may withdraw from your 457(b) when you leave your employer, or in the case of death or an unforeseen emergency. You may be required to pay income tax on the amount withdrawn.
Loans
If the plan allows, a loan may be taken against your 457(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply.
Roth 457(b)
At-a-glance
• Deferred compensation plan (DCP)
• After-tax contributions
• Does not reduce taxable income
• Earnings grow tax-free, with conditions (see below)
• Offered by some (but not all) Texas school districts
Overview
A Roth 457(b) is a DCP that allows employees of educational institutions and certain tax-exempt organizations to save after-tax dollars for retirement.
It works much like a Roth 403(b) plan in terms of taxes and loans and can offer another way to save for retirement.
Taxes
Contributions are made to your Roth 457(b) after taxes are taken from your paycheck, allowing your earnings to grow — and withdrawals to be taken — tax-free if the account has been open for at least five years, and you are age 59½ or older. Roth 457(b) money is subject to required minimum distribution rules.
Withdrawals
Regardless of age, you may withdraw from your Roth 457(b) when you leave your employer, or in the case of death or an unforeseen emergency.
Loans
If the plan allows, a loan may be taken against your Roth 457(b) funds regardless of your employment status. Repayment terms and interest rates are determined by your investment provider. Certain rules may apply.
About the RBFCU Freedom
Retirement Plan™
Provided through an exclusive partnership with Nationwide™, this plan — offered in Traditional and Roth 403(b) and 457(b) options — is available to employees in school districts and certain tax-exempt organizations served by RBFCU.
It’s a smart way to build your future.
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What is the difference between a 457(b) plan and a 403(b) plan?
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.
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Can I transfer my 403(b) plan at any time?
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.
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What if I’m interested in retirement planning — but do not work in K-12 education?
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.
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Although I’m employed by a school district, my long-term partner or spouse is not. Can we both visit with a financial advisor?
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.
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Retirement is a concern, but can you help school employees like me with other aspects of a financial plan, too?
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.
This page was last updated in April 2026.
DISCLOSURES
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
All products and services under the RBFCU Freedom Retirement Plan™ are offered through Nationwide, which is not affiliated with Ameriprise Financial Services, LLC. Ameriprise does not sponsor or endorse, and has no direct interest in, the RBFCU Freedom Retirement Plan.
Ameriprise Financial Services has a partnership with this financial institution to provide financial planning services and solutions to clients. The financial institution is not an investment client of Ameriprise but has a revenue sharing relationship with us that creates a conflict of interest. Details on how we work together can be found on ameriprise.com/sec-disclosure.
Ameriprise Financial Services partners with financial institutions to provide investment advisory, brokerage and insurance services to their clients. This is a contractual relationship, which earns the financial institution compensation from Ameriprise for successful referrals. In most cases, the financial institution also receives a majority of the commissions and fees generated by Ameriprise financial advisors for the services noted above. This applies as long as the referred client maintains a relationship with Ameriprise. Non-licensed employees of the financial institutions may receive incentives from their employer for referring clients to Ameriprise. These incentives create a conflict of interest.
Ameriprise Financial is not affiliated with the financial institution.
RBFCU Retirement Program, a financial advisory practice of Ameriprise Financial Services, LLC, is a division of RBFCU Investments Group LLC.
The selection, monitoring, and replacement of investment options for the Nationwide Freedom Retirement Plan are made by Leafhouse Financial which is not affiliated with Ameriprise Financial Services, LLC.
A Roth IRA is tax free as long as investors leave the money in the account for at least 5 years and are 59½ or older when they take distributions or meet another qualifying event, such as death, or disability.
Be sure you understand the potential benefits and risks of an IRA rollover or transfer before implementing. As with any decision that has tax implications, you should consult with your tax adviser prior to implementing an IRA rollover or transfer.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.