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PENSION
A state pension is the foundation of your retirement package and understanding precisely what to expect from it so that you may plan your supplemental income tools accordingly.
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A pension plan is another name for a retirement fund. It is money saved over time to provide an income when you stop working and retire.
Your pension builds up throughout your working life. To grow this fund, you and your employer usually make regular contributions while you are employed. For many public employees, this is a straightforward and reliable way to save for retirement.
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When you become a public employee, you are usually automatically enrolled in a state or government pension scheme. There are different types of pension plans, and the age at which you can start receiving money depends on the type of pension you have. In many cases, people can begin accessing their pension as mandated by your state.
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403(B)
A 403(b) plan—also known as a tax-sheltered annuity (TSA)—is a retirement account designed for certain public employees. Eligible participants typically include public school employees who are involved in day-to-day school operations. In general, most teachers and administrators at public schools qualify for a 403(b) plan.
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A 403(b) plan is similar to a 401(k) plan in several ways. Both offer tax-advantaged benefits that help employees save for retirement. However, while 401(k) plans are commonly offered to private-sector employees, 403(b) plans are specifically designed for public-sector and nonprofit workers.
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The primary problem with many 403(b) plans, particularly for K-12 public school employees, is a lack of regulation under the federal ERISA law, which often results in excessive fees, limited and high-cost investment options.
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Whether you have matching funds or not, AGERA will illustrate the likely outcome of your current 403(b) plan, including the the tax implications.
TARP PLANS
The TARP plans (Tax Advantaged Retirement Plans) are designed to provide tax-free earnings before or after retirement with no government limitations. Tarp plans offer several potential advantages for retirement planning, primarily centered on tax efficiency, market protection, and flexibility. It is no longer a supplemental tool used by only high-income earners who have already maximized contributions to other tax-advantaged accounts. There are no maximum contributions or income limits. Additionally, there is no minimum attained age to begin taking distributions and there are no penalties. TARP plans are also famous for providing zero taxes on the growth of your account and a 0% loss guarantee during years that the market lost so that your intended compounded interest can steadily earn money without making up losses along your retirement savings journey.
ROTH IRA
The ROTH IRA is designed to provide tax-free earnings to be used in retirement only with certain government limitations.
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In the world of retirement accounts, Roth IRAs are a popular choice. These accounts offer tax-free growth and tax-free withdrawals in retirement, and they do not require minimum distributions at a certain age.
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However, no financial tool is without drawbacks. Roth IRAs have some limitations that are important to consider. Carefully weighing the benefits and potential downsides of a Roth IRA can help you determine whether—and how—it fits into your overall retirement strategy.
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While anyone can open a Roth IRA, the amount you are allowed to contribute depends on your modified adjusted gross income (MAGI). In 2025, if your income is below the eligibility threshold, you can contribute the full amount of only $7,000 per year, or $8,000 if you are age 50 or older. In 2026, the full contribution limit for those below the income threshold increases to $7,500, or $8,600 for individuals age 50 and older.
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If your income exceeds certain limits, your allowed contribution may be reduced and eventually phased out entirely. Although you may not be able to contribute directly to a Roth IRA at higher income levels, there are alternative strategies that can allow participation. These options typically involve additional steps and careful planning.