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I am a new teacher in TX and was told that the 403b plan could help me pay off my credit card debt. I was told that the tax taken out of my income could be used to help me pay off my debt if I invest it in the 403b plan. I am clueless about this. Any help is appreciated, thanks in advance.

1 Thought on Can the 403b plan help me get out of credit card debt?
  1. Reply
    Rod O
    July 21, 2011 at 5:23 am

    No. You only ‘save’ tax at your tax margin rate (Your highest rate) on the toal amount put into the 403. So, if you put a $ 1,000 in you save $ 360 in taxes. But you have to put in the entire $ 1,000 so your cash flow is less.

    That being said, a 403B is a great way to save, especially if you are young. Sock as much money away as you can. What will it feel like to be millionaire when you retire because you put away $ 10k a year while working?

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