The (Potential) Problem With Your 403(b) Retirement Plan

Saving for retirement is important. This is a simple and obvious statement. The challenge involves figuring out how best to save for retirement. And the answer isn’t always simple or obvious. For example, a 403(b)—the most common retirement plan offered to speech-language pathologists and other communication sciences and disorders professionals by their employers—can be complicated and, in some instances, problematic. The issue starts with the fact that there are two different types: ERISA and non-ERISA. The Department of Labor requires ERISA (Employee Retirement Income Security Act of 1974) plans to meet pretty strict standards, including a fiduciary duty from the plan administrator. Most nonprofit health care workplaces and higher learning institutions, such as universities, offer ERISA 403(b) plans. These plans are generally solid and employers might even offer a match. A note on employer match: If your employer offers one with your 403(b), you should almost assuredly contribute enough to get the full matching amount. Less reliable options Professionals at K–12 public schools usually participate in non-ERISA 403(b) plans. These plans rarely include an employer match and are not held to the same standards of ERISA 403(b)s. This ultimately means offerings from your school district can vary widely in terms of quality. Many companies partnering with school districts to provide plan options focus on selling insurance, as well as investment plans. In fact, in some insta...
Source: American Speech-Language-Hearing Association (ASHA) Press Releases - Category: Speech-Language Pathology Authors: Tags: Audiology Slider Speech-Language Pathology Source Type: blogs