1. What is the 403b Calculator?

The 403b Calculator helps estimate the future value of your 403b retirement account based on current balance, annual contributions, expected return rate, and investment period.

2. How Does the Calculator Work?

The calculator uses the future value formula:

Where:

• \( Current \) — Current account balance in USD
• \( Contributions \) — Annual contributions in USD
• \( r \) — Annual return rate (as decimal, e.g., 0.07 for 7%)
• \( n \) — Number of years

Explanation: The formula calculates compound growth of your contributions over time, added to your current balance.

3. Importance of 403b Planning

Details: A 403b is a tax-advantaged retirement plan for employees of public schools and certain non-profits. Proper planning helps ensure adequate retirement savings.

4. Using the Calculator

Tips: Enter current balance, annual contributions, expected annual return (typically 5-7% for moderate portfolios), and years until retirement.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between 403b and 401k?
A: Both are retirement plans, but 403b is for non-profit and public education employees, while 401k is for private sector employees.

Q2: How much can I contribute annually?
A: For 2024, the limit is $23,000 ($30,500 if age 50+). Check IRS for current limits.

Q3: What's a realistic return rate?
A: Historically, 7% is reasonable for a balanced portfolio, but actual returns vary yearly.

Q4: Should I include employer matches?
A: Yes, include any employer contributions in your annual contributions amount.

Q5: How often should I recalculate?
A: Annually, or whenever your contribution amount or expected retirement age changes.