Just as reading is the cornerstone of education, the 403(b) is the cornerstone of an educator's retirement planning.
The 403(b), named after a section of the Internal Revenue Code, is a tax-deferred savings program developed for tax-exempt organizations, such as your school system. They make saving for retirement simple. The money is automatically taken out of your paycheck as a pre-tax contribution; thereby reducing your taxable salary by the amount you contribute-an immediate tax break. Both, the money you contribute and the earnings on that money, continue to grow without being taxed until the funds are withdrawn.
In addition, the 403(b) offers the highest employee contribution limit of any employer provided retirement plan. In 2007, you can contribute any amount up to $15,500, plus an additional $5,000 if you are age 50 or older.
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403(b) Learning Center 
