403(b) Retirement Savings Plan

The tax advantages, plus plan features and benefits, make a 403(b) plan with Corebridge Financial an ideal way to help accumulate funds for your retirement. 

The tax advantages, plus plan features and benefits, make a 403(b) plan with Corebridge an ideal way to help accumulate funds for your retirement. And Corebridge brings you the knowledge, investment options and personal services to help keep things simple.

Pretax contributions

When you participate in a 403(b) plan, you contribute by convenient payroll reduction before federal income tax withholding is calculated. This helps reduce your currently taxable income so you can save dollars for retirement that otherwise would have gone to pay income taxes.

If you meet certain requirements, you might be able to make the regular maximum contribution, plus the 403(b) catch-up contribution and the age-based catch-up contribution during the plan year. If you are eligible for both catch-up contributions, you must exhaust the 15-year catch-up first. Your financial professional can help calculate your annual contribution limits.

Check out this year’s contribution limits.

Tax-deferred accumulation

Current federal income taxes on all contributions, interest and earnings in your 403(b) plan are deferred until withdrawal, usually at retirement. Tax-deferred earnings, coupled with the power of compounding, may provide greater growth than might be possible with currently taxable savings methods. Remember that income taxes are payable when you withdraw money from your account. And since retirement accounts should be considered long-term investments, federal restrictions and a 10% federal early withdrawal tax penalty may apply to withdrawals prior to age 59½.

Investment flexibility

We offer an array of investment options from well-known investment managers. This provides the flexibility you might need to design a program tailored to your individual needs. Retirement plans and accounts that satisfy relevant qualification rules, such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are funded 

with an annuity. If you are considering funding a tax-qualified retirement plan or account with an annuity, you should know that an annuity does not provide any additional tax- deferred treatment of earnings beyond the tax deferral of the tax-qualified retirement plan or account itself. However, annuities do provide other features and benefits. Keep in mind that investment values in the variable options will fluctuate so that your investments, when withdrawn, may be worth more or less than the original cost. Remember all investment involves risk, including possible loss of principal. Your financial professional can assist in choosing the options that will match your long-term goals.

Tax-free loans

Under some employer plans, you may borrow against a portion of your accumulated account value—subject to certain limitations—without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal early withdrawal tax penalty if you are under age 59½.

Access to your savings

Generally, depending on your employer’s plan, your account contributions can be distributed in any of the following events:

• Age 59½
• Severance from employment
• Your death or disability
• Financial hardship (employee contributions only)

Again — a 10% federal early withdrawal tax penalty may apply to withdrawals prior to age 59½.

Corebridge: Moving financial futures forward 

At Corebridge Financial, we believe everyone deserves financial security. We’re helping people take action toward their future goals with our broad suite of retirement solutions and insurance products. Every day, we work hard to make it possible for more people to take action in their financial lives—because action is the bridge from planning to outcomes, from today’s financial needs to tomorrow’s aspirations.