Supplemental Savings
STRS Ohio may provide a substantial amount of your retirement income; however, supplemental retirement plans are essential for building a financially secure future. The time to start saving is now and enrollment is simple.
Resources
- I Wish Someone Would Have Told Me ... brochure
- Ohio Deferred Compensation website
- Internal Revenue Service website
- Your employer — to obtain information about 403(b) plan vendors.
- STRS Ohio’s Financial Fitness seminar and Beyond the Classroom workshop. These STRS Ohio-sponsored programs offer tools that can assist with determining your “retirement income gap” — the anticipated gap between retirement income and expenses.
Plan features and contribution limits
Tax regulations favor those who want to save for retirement. Tax-deferred accounts, such as a 403(b) or 457(b) governmental plan enable you to avoid current taxation on your contributions and put the full pretax amount to work for you before it is reduced by taxes.
403(b) | 457(b) Governmental Plan | Traditional Deductible IRA | Traditional Nondeductible IRA | Roth IRA | |
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Eligibility1 | Employees of public school systems and tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code | State and municipal workers and public teachers |
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Deductibility | Not applicable | Not applicable |
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No | No |
Contribution limits under age 502 |
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Age 50 or older catch-up provision3 |
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Final three-year catch-up provision4 | None |
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None | None | None |
15-year rule catch-up provision5 | 2024: $3,000 | None | None | None | None |
Early distribution penalties6 | 10% of distributions before age 59-1/2 | None | 10% of distributions before age 59-1/2 | 10% of distributions before age 59-1/2 | 10% of distributions before age 59-1/2 and held less than 5 years |
Required minimum distribution7 | Generally begins April 1 of the year following the year in which you reach age 73 | Generally begins April 1 of the year following the year in which you reach age 73 | Generally begins April 1 of the year following the year in which you reach age 73 | Generally begins April 1 of the year following the year in which you reach age 73 | None |