If you withdraw funds before age 59 1/2, you will face a 10% additional IRS tax.
These plans often come with higher fees compared to other retirement plans.
Fewer employers offer contribution matches for 403(b) plans as compared to 401(k) plans.
The investment options may be limited, depending on your experience.
It is important to carefully evaluate the annual fees and costs associated with a 403(b) plan before enrolling. Consider opening a separate IRA if you need more options.