Roth 403(b) Tax-Sheltered Account (TSA)

A Roth 403(b) is a Tax-Sheltered Account (TSA) developed by the IRS to allow employees of educational institutions and certain tax-exempt organizations to save post-tax dollars for retirement. A Roth 403(b) works much like a Roth 401(k) and can offer another way to save for retirement.

With the RBFCU Freedom Retirement Plan™, you can create a plan you’ll feel confident about. This plan is offered through an exclusive partnership with Nationwide® and is available to employees in school districts and certain tax-exempt organizations served by RBFCU.

What you should know about a Roth 403(b):

Tax form and calculator


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.

Hand withdrawing money


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 allowable age.

Hand giving money


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.

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To learn more about the RBFCU Retirement Program and benefits of enrolling, contact us at:

Retirement Calculators

  • What will my income be after I retire?
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Retirement FAQs

  • What is the difference between a 403(b) plan and a Roth 403(b) plan?
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    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.

  • How much can I contribute to a 403(b) plan?
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    In 2019, you may contribute up to $19,000 to a 403(b) and/or Roth 403(b). If you are over age 50, you may contribute an additional $6,000 annually. This limit is combined for both plans.

  • Can I transfer my 403(b) plan at any time?
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    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.

  • Are there any additional contribution catch-up provisions for the 403(b) plan?
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    Depending on your district plan, the 403(b) may have a 15 year service catch-up which may add up to $3,000 annually for 5 years. You must qualify every year through your district’s administrator.

  • What is the difference between a 457(b) plan and a 403(b) plan?
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    Both types of plans are tax deferred, but with the 457(b), you may withdraw when you leave your employer, or in the case of death, disability or unforeseen emergency, regardless of your age. Whereas with the 403(b), you can receive your distributions at age 59½, upon severance of employment or become fully disabled.

RBFCU Investments Group LLC is a wholly-owned subsidiary of RBFCU Services LLC. RBFCU Services LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU). Securities sold, advisory services offered through CUNA Brokerage Services Inc. (CBSI), member FINRA / SIPC, a registered broker/dealer and investment professional. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-2529771.1-0519-0621