403(b)
A 403(b) is a way for grown-ups to save money for when they are older and need it. Think of it like a piggy bank, but it's not made of ceramic and you can't shake the money out of it. This special piggy bank is made by the government and is called a retirement account.
When someone works for a school or a non-profit organization, they can ask their employer to take some of their money and put it into this piggy bank for them. That way, when they get older and can't work as much anymore, they'll still have money to buy things they need, like food, clothes, and a nice place to live.
People can put different amounts of money into their retirement piggy bank each year, but they can't take the money out until they are older, usually around 59 and a half years old. And like a piggy bank, the whole point is to keep adding to it over time, so it can grow and grow until there's a lot of money in there when the person is older.
So that's what a 403(b) is - a special piggy bank that grown-ups use to save money for when they're older and can't work as much anymore.
When someone works for a school or a non-profit organization, they can ask their employer to take some of their money and put it into this piggy bank for them. That way, when they get older and can't work as much anymore, they'll still have money to buy things they need, like food, clothes, and a nice place to live.
People can put different amounts of money into their retirement piggy bank each year, but they can't take the money out until they are older, usually around 59 and a half years old. And like a piggy bank, the whole point is to keep adding to it over time, so it can grow and grow until there's a lot of money in there when the person is older.
So that's what a 403(b) is - a special piggy bank that grown-ups use to save money for when they're older and can't work as much anymore.
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