Protection-Focused Path
Interest crediting can be linked in part to an external market index without direct stock market investment. Caps, participation rates, or spreads determine how much interest is credited.
403(b) annuity options
Not Every 403(b) Annuity Works the Same Way
Understanding Fixed Indexed and Variable Annuity Approaches
A 403(b) is a section of the tax code, not a single product. Your specific account terms determine your growth potential, fee structures, and access rules.
Review Your 403(b) Options
Two Paths to Growth. A Focus on Protection.
Explore how fixed indexed and variable annuities approach growth, market changes, fees, access, and retirement income.
Choose a topic to compare the two paths.
How Value May Grow
Variable Annuity
Market-Based Path
Account value directly reflects the performance of selected underlying investment funds, minus applicable fund management fees, Mortality & Expense (M&E) charges, and account expenses.
Crediting methods, investment choices, and feature details are defined by individual account terms
What Happens When the Market Declines
Fixed Indexed Annuity
Protection-Focused Path
Negative market turns won't reduce your balance thanks to the 0% floor, though account fees, withdrawal timing, or cash distributions can still lower your account value.
Variable Annuity
Market-Based Path
Account value fluctuates directly with market performance and can lose principal when underlying investments decline.
Not every indexed annuity uses a 0% floor. All guarantees depend on the issuing insurer’s claims-paying ability.
The Fees and Expenses
Fixed Indexed Annuity
Protection-Focused Path
Most fixed-indexed accounts do not deduct explicit annual management fees. Instead, your growth potential is shaped by caps, participation rates, spreads, or optional feature fees.
Variable Annuity
Market-Based Path
Costs typically include administrative and insurance charges, underlying fund management fees, and optional rider expenses.
Always refer to your official account summary or prospectus to confirm specific expenses, crediting terms, and withdrawal conditions.
Access & Liquidity
Fixed Indexed Annuity
Protection-Focused Path
Withdrawal terms and tax implications vary by product. Loan features depend on district plan provisions, with specific interest rates, fees, and repayment rules governed by your account terms.
Variable Annuity
Market-Based Path
Withdrawal terms and tax implications vary by product. Loan features depend on district plan provisions, with specific interest rates, fees, and repayment rules governed by your account terms.
An employer is not required to offer plan loans. Tax treatment depends on the transaction and individual circumstances.
Income Potential
Fixed Indexed Annuity
Protection-Focused Path
Offers versatile income options on your terms. You are never required to convert your account into fixed annuity payouts; you can draw income as needed, set up systematic withdrawals, or access lump sums.
Variable Annuity
Market-Based Path
Income levels generally fluctuate based on underlying fund performance, but optional benefit riders can lock in a minimum guaranteed payout floor—allowing you to capture market growth while keeping your baseline income protected against market downturns.
An income-benefit calculation is not an unrestricted cash balance, and a rider is not automatically included. Guarantees depend on the issuing insurer’s claims-paying ability.
Questions for your account review
Questions to Bring to a Review
- Am I contributing enough to stay on track for my retirement goals, or should I adjust my payroll contributions?
- How are my account's index choices performing, and how much growth am I actually earning?
- Is there a newer 403(b) product available that offers better features, lower costs, or stronger growth terms?
- What fee structures, optional rider costs, or account access rules apply to my current setup if I need to make a change?
Bring the details into focus
Do you know how your current 403(b) works?
A focused review helps you clarify your account structure, fee options, and crediting terms—so you can make your next retirement decision with complete confidence.
Schedule a 403(b) Review