Vanguard 403(b)(7) accounts—easy, low-cost ways for you to save for retirement


Invest for your future in our Vanguard 403(b) program. We offer a wide range of at-cost funds and easy account management to help you reach your retirement goals.


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See how easy it is to invest with Vanguard. Call our associates at  800-662-2739.


Key benefits of 403(b) plans

A 403(b) plan offers flexibility, generous contribution limits, and a broad range of investment choices, making your employer's 403(b) plan a great place to start saving for your retirement.

Automatic contributions
Pay yourself first every pay day with contributions directly from your paycheck. You won't be tempted to spend the money on something else. Your maximum contribution can't exceed the lesser of:

  • 100 percent of your compensation,or:
  • $18,000 for the 2015 and 2016 tax years ($24,000 for employees age 50 or older).

Pre-tax contributions
Your contributions to the plan are made on a pre-tax basis, so your money starts working for you before the government can tax it. (Note: Vanguard does not currently offer an after-tax or Roth 403(b) option in our program.)

Tax-deferred growth
Your contributions and earnings from investments grow tax-free until you start making withdrawals—usually after many years and possibly when you're in a lower tax bracket.*

Personal control
Choose from a variety of investment options and save as much as you can, up to the IRS and plan limits. And if you change jobs, you usually can choose to leave your money in your current plan, or move it to an IRA or a new employer's plan.

Employer contributions
Check to see if your employer makes contributions to your 403(b) plan. In some cases, they may match some percentage of your contributions. Essentially, it's free money—don't pass it up.

Why choose Vanguard mutual funds

Costs matter
High costs and fees cut directly into your investment returns. That's why it's important to know the costs of the investment options in your employer's plan. Over time, lower costs can help increase your chances of reaching your retirement goals. 

At-cost investing
You keep more of your money when you invest with Vanguard because we manage our funds at cost—it costs you what it costs us to run them. The average Vanguard fund expense ratio is 82% less than the industry average.* And if you're considering a high-priced annuity product, the difference could be even greater.

A different kind of company
Our unique client-owned structure means that our only loyalty is to clients like you. We're owned by our funds, which are owned by our clients, so we have only your long-term interests in mind. Our reputation for integrity and investor focus is well known and respected.

Learn more about our way of investing »

Highlights of the Vanguard 403(b) program

  • A dedicated support center that offers unbiased assistance from 403(b) specialists who don't work on commission.
  • A broad lineup of index and actively managed funds, as well as Target Retirement Funds—which can be a one-fund investing approach. Learn more about the benefits of mutual funds »
  • No sales charges or commissions on contributions and no hidden transaction fees.†
  • Generally, no minimum initial investment.
  • 24-hour account management on, where you can view account balances, perform transactions, use planning tools, and more.

All investments are subject to risk.

Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

* When taking withdrawals from an employer-sponsored retirement plan before age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax.

**Vanguard average expense ratio: 0.18%. Industry average expense ratio: 1.01%. Sources: Vanguard and Lipper, a Thomson Reuters Company, as of December 31, 2015.

† We charge a low annual $15 custodial account fee per fund to help offset the additional expenses incurred by 403(b) accounts. This fee is waived for Voyager® and Flagship Services® clients.

Past performance is no guarantee of future results.

Investment management services provided by Vanguard to the Vanguard funds and ETFs are at cost.


Invest now

Download a
403(b)(7) new account kit

Vanguard 403(b) program

For employers:
Offer the Vanguard 403(b) program to your employees

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