No. of Recommendations: 0
TMFPixy will give you a better answer, I am sure, but here goes.

Your 403b is similar to a 401k, in that funds saved are tax-deferred. That means you only pay tax on withdrawn funds. An annuity works the same way. However, I believe you can cash out your 403b money and roll it into a self-directed IRA, if you leave your job or retire. You can't do that with an ordinary annuity, since it is not a retirement plan, merely a "tax-advantaged life insurance vehicle" (I read that somewhere). You can purchase an annuity within your 403b, which will let you cash out and roll that money into an IRA if you wish.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.