How the Plan Works

Once you have satisfied the service requirement, the Boston University Retirement Plan provides you with an opportunity to set aside money for your retirement in one of the following ways:

Before-tax Contributions — You pay no federal or state income tax on the before-tax money you put into the plan until you receive it. In addition, the investment earnings on all contributions accumulate tax-free until withdrawal.

Roth 403(b) Contributions — You pay federal and state income tax on the after-tax money you put into the plan. The investment earnings accumulate tax-free and are paid to you tax-free at the time you receive it as long as the withdrawal is qualified.

University Contributions — You pay no federal or state income tax on the contributions the University puts into the plan on your behalf or the accumulated investment earnings until you receive it.

The tax deferral advantage can, in effect, increase the amount you can afford to save now.