• Your annual gross income is reduced by the amount you contribute to your 403(b) plan. This is called a pretax contribution. Pretax contributions can greatly reduce your tax
  bill. For example, if you contribute $100 a month to a 403(b) plan, your monthly gross income will be reduced by $100. If you are in a twenty percent tax bracket, you will pay $20 less in taxes every month, so your $100 investment would save you $20 in current taxes. Note however, your Social Security (FICA) taxes are based on your gross income, notwithstanding any deferrals. When you take payments, they are subject to income taxes.
• Your earnings are tax-deferred. That means the interest, dividends, or capital appreciation you earn on your 403(b) plan contributions will not be taxed until you start withdrawing money, generally at retirement.
• Automatic payroll deductions make saving for retirement easy. You’re less likely to miss money you never see.
• Contributions to a 403(b) plan will not reduce your Social Security benefit.
• Some plans have loan features that let you withdraw money (without tax or penalties) as a loan. Of course, you will be charged interest on the loan, and failure to pay the
  loan back within the agreed-upon terms may result in adverse tax consequences.
• Your employer may contribute to your 403(b) plan. Employer contributions and earnings on your 403(b) account grow tax deferred. Since employer contributions and earnings are not
  taxed until they are withdrawn, your account balance may grow more quickly.

May I Participate in a 403(b) If I Participate in Other Plans?
If you already participate in a defined contribution plan (e.g., 401(k) plan) you may still be able to contribute to a 403(b) plan. You will need to check with your benefits specialist or tax professional to find out what’s allowable in your specific situation. If your employer is eligible but does not have a 403(b) plan available, ask your benefits specialist about starting one.