Home/All States/Ohio
01.
3.5%
OH State Income Tax
02.
$23,000
2024 403(b) Limit
03.
STRS
Pension System
§ 01 — The Calculator

Run your projection

Defaults are set for a typical Ohio teacher's 403(b) supplement. Adjust each input to match your situation, then calculate.

$
Starting balance in your 403(b) or IRA
$
$400 = $4800/yr
%
yrs
%
%
Assumes national average inflation of ~3%
%
Ohio tax rate: up to 3.5%
§ 03 — The Output

After years

Ohio Reality: With state income tax up to 3.5%, pre-tax 403(b) contributions are especially powerful for STRS members — every dollar you defer saves you both federal AND state taxes immediately.
Total Portfolio Value
Nominal future value
Total Principal
Out-of-pocket contributions
Real Purchasing Power
In today's dollars
Compound Gain
Effective Rate
Doubles In
Total Interest

Growth chart

Year-by-year breakdown

YearMonthlyDepositedPortfolioGainReal Value
§ 04 — Essay

How Ohio Teachers Can Strengthen Their STRS Pension with Compound Interest

If you're an educator in Ohio, the State Teachers Retirement System of Ohio (STRS) forms the bedrock of your retirement security. But like most state pension systems, STRS alone rarely replaces 100% of your pre-retirement income. Whether you teach in Columbus, Cleveland, and Cincinnati, understanding how compound interest in a 403(b) can supplement your pension is one of the most important financial decisions of your career.

The Retirement Gap in Ohio: A STRS pension that replaces approximately 60% of your final salary still leaves a meaningful gap — especially as healthcare costs rise 5–7% annually. For teachers in Columbus and Cleveland, a 403(b) powered by compound interest is the most reliable way to close that gap.
§ 05 — Common Questions

Frequently asked

Is STRS alone enough for retirement in Ohio?
For most Ohio teachers, STRS replaces about 50–65% of final salary. Comfortable retirement typically requires 70–90%, so a 403(b) supplement closes that gap.
Are Ohio teachers covered by Social Security?
Generally NOT covered. This affects how much you should contribute to a 403(b) — uncovered teachers should generally save more.
Can I contribute to a 403(b) and an IRA?
Yes — they have separate limits ($23,000 for 403(b) and $7,000 for IRA in 2026, with catch-up amounts at 50+). Many teachers use both.
What happens to my 403(b) if I move out of state?
Your 403(b) is portable and yours regardless of where you live. You can roll it into an IRA when you separate from your district.
How does Ohio's 3.5% state tax affect my withdrawals?
Traditional 403(b) withdrawals are taxed as ordinary income in Ohio. Some states offer partial exemptions for retirement income — check current Ohio rules.
§ 06 — Sources

Recommended resources

Official STRS — Ohio Official STRS pension portal for Ohio educators. Education NEA — National Education Association National support for educators including financial wellness and retirement planning. Tax IRS 403(b) Information Federal rules, contribution limits, and tax treatment for 403(b) plans. Finance Ohio Department of Revenue Verify current Ohio tax brackets, deductions, and retirement income rules.
§ 07 — News

Recent items of note

STRS Ohio STRS Pension News & Updates IRS 2024 Federal 403(b) Contribution Limit: $23,000 Finance Ohio Cost of Living & Teacher Salary Trends

Monthly briefing

Retirement insights for Ohio educators. STRS updates, IRS limits, planning notes. One short email per month.