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

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.

Hand withdrawing money

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 allowable age.

Hand giving money

Loans

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?
  • What will my expenses be after I retire?

Retirement FAQs

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

    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.

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