Chester (C. Edziu) Pacana is a conservative wealth management planner who serves as managing agent at DeRosa & Associates in Jamestown, Tennessee. Operating with the motto, “Protecting Principal and Securing Retirement,” Chester Pacana helps clients with retirement planning through investment vehicles such as 401(a), 403(b), and 457(b) plans. Similar to 401(k)s, these plans are designed for organizations that offer employees defined-benefit plans, or pensions, upon retirement, and they are intended to help employees save for retirement and/or supplement the pension plans.
Public-sector employers, school districts, religious groups, and nonprofits have a choice of retirement savings accounts to offer to employees. A money-purchase retirement plan, the 401(a) plan is funded in large part by employer contributions and receives employee contributions that are either mandatory or voluntary, depending on the employer. In addition, 401(a) plans can be either core or supplemental retirement plans and are often used to attract employees.
Other options include 403(b) and 457(b) plans. 403(b) plans have a catch-up contribution provision, which allows eligible employees to contribute up to $3,000 more per year. 457(b) plans are intended specifically for government employees and have generous catch-up contribution rules. In addition to employer-sponsored programs, employees may decide to open independent Individual Retirement Accounts (IRAs), to save even more aggressively for retirement.
