For a Traditional IRA you contribute post-tax dollars but then deduct it when you file your taxes, making it effectively the same as a pre-tax 401k/403b. You can contribute up to $5500 depending on your income and such. Also, I should mention that you can typically contribute to both an IRA and a 401k/403b, but you may need to resort to just an IRA if the management company selection is too terrible.
More info from irs.gov:
https://www.irs.gov/retirement-plans/traditional-iras
https://www.irs.gov/retirement-plans/ira-deduction-limits
Thanks! I will definitely do this and then see what other employer choices are. I am going to call each and get their plans information today. Also, I make $125k and my fiance makes $90k so not sure if this will work but will check the income limits
Here is some advice from a fellow teacher.
She makes too much to get an IRA tax deduction. The 403(b) is the better option.
What state are you in?
Have a look at VOYA. Your plan administrator should have a link to a website for your particular state/district. There you can find out whatever info you need as far a funds and fees go. In CA they charge a management fee of .025 per year, and offer us an assortment of funds, including Vanguard index funds. Most of the other options you listed will want to sell you an annuity. Run away.
After getting her 403(b) setup, open a ROTH IRA (if not already done). Dump $100 into it and forget about it. It will come in handy later if/when you want to do a ROTH ladder/conversion. Doing it now gets the clock ticking on the 5 year time window.
Here is what you should also be looking into: Does your girlfriend also qualify for a 457(b)? IRS rules allow for both. Of course, it depends on her district and plan administrator (whether they want to invest the time to set both types up) but if she did you might look at opening both a 457 after you get the 403 up and running.
I was thinking....Could I invest $18k pre-tax and then roll over every year to an IRA at Vanguard.
In short, no. Distributions from 403(b) accounts have to meet certain requirements.
From the IRS website:
Distributions
Permissible distributions. Generally, a distribution can’t be made from a 403(b) account until the employee:
Reaches age 59½;
Has a severance from employment;
Dies;
Becomes disabled;
In the case of elective deferrals, encounters financial hardship; or
Has a qualified reservist distribution.
Hope that helps.