What Are 401(k), 403(b), 457, and TSP Plans—And Who Has Them?

 

Retirement accounts can look similar at first glance, but they’re often tailored to your profession and employer. Here’s a quick breakdown:

 

🔹 401(k)

• Typically offered by private-sector employers.
• Contributions are often matched by your employer.
• Grows tax-deferred until retirement withdrawals.

🔹 403(b)

• Designed for employees of public schools, universities, and nonprofit organizations.
• Similar tax treatment as 401(k), with some differences in investment options and catch-up contributions.

🔹 457(b)

• Common among government employees and some nonprofit workers.
• Allows early withdrawal without the 10% IRS penalty (in many cases).
• Useful for public safety employees nearing early retirement.

🔹 TSP (Thrift Savings Plan)

• Federal government’s version of a 401(k).
• Lower-cost investment options with automatic government contributions for some federal workers and military members.

Understanding what you have is step one. Knowing what to do with it—that’s where we come in.

 

The Hidden Risks of Leaving Money in an Old Employer Plan

 

It’s tempting to leave your retirement money where it is after you stop working—but that choice comes with real risks:

• ❌ Limited investment choices that may not align with your risk tolerance or income needs.
• ❌ No personalized guidance—you’re on your own.
• ❌ Exposure to market volatility without downside protection.
• ❌ Risk of forgetting or mismanaging accounts across multiple employers.

If you’re no longer with the employer who sponsors the plan, it’s time to take control of your future.

 

Why a Protected Rollover Makes Sense

 

Rolling over your 401(k), 403(b), 457, or TSP into a protected environment allows you to:

 

✅ Preserve Tax Advantages

• Your funds remain tax-deferred during the rollover process—so you don’t lose any of your gains to unnecessary taxes.

✅ Create Predictable Retirement Income

• Convert a portion of your savings into guaranteed monthly income that you can’t outlive.

✅ Minimize Market Risk

• Choose options that offer principal protection with growth potential—great for conservative investors and near-retirees.

✅ Gain Control and Flexibility

• Enjoy more personalized investment options and tailored strategies suited to your lifestyle and goals.

How Protection Plus Insurance Helps You Rollover with Confidence

 

We’ve guided thousands of San Diego-area clients through seamless, compliant retirement rollovers. Our approach is hands-on, educational, and personalized.

 

Here’s what you can expect:

• Account analysis to determine the best rollover approach for your unique situation.
• Custom protection strategies to minimize taxes and maximize income.
• Assistance with paperwork and transfers, so nothing gets missed or mishandled.
• Ongoing guidance, ensuring your plan evolves as your life and needs change.

Ready to Take Control of Your Retirement?

 

Planning for retirement is one of the most significant financial milestones in life, and having a trusted partner to navigate this journey is essential. At Protection Plus Insurance, we are dedicated to helping retirees and their families achieve financial security, maintain their lifestyle, and create a legacy for future generations.

 

Take The First Step Today

 

Don’t leave your retirement to chance—take control of your financial future today. Contact Protection Plus Insurance for a free consultation and expert guidance on your retirement planning. Call us at (858) 352-6535 or send an email to glenn@protectionplusins.com to schedule your appointment. Let us help you build a secure and prosperous retirement!

 

Related Services:

• Retirement Income Planning
• Tax-Efficient Retirement Planning Strategies

• Guaranteed Lifetime Income