▮ INPUT

Run your projection

Defaults tuned for a typical Texas 403(b) supplement.

$
Starting balance in your 403(b) or IRA
$
$450 = ~3% of $50k salary
%
YRS
%
%
Fed target: 2% · Recent TX average: 3–3.5%
%
★ Texas has zero state income tax!
▮ OUTPUT

Projection complete

Based on the inputs you provided. Hover the chart for year-by-year detail.

Texas Advantage: Unlike teachers in California or New York, you pay $0 in state income tax — every dollar of investment growth keeps more in your pocket.
Portfolio Value
—
Year — nominal value
Total Principal
—
Out-of-pocket contributions
Real Purchasing Power
—
In today's dollars, inflation-adjusted
Compound Gain—
Effective Rate—
Doubles In—
Total Interest—

Growth chart

Year-by-year

YRMO/CONTRIBDEPOSITEDPORTFOLIOGAINREAL
▮ THE GUIDE

How Texas Teachers Can Maximize Their TRS Pension with Compound Interest

If you're a Texas educator, the Teacher Retirement System of Texas (TRS) forms the bedrock of your retirement security — but it's rarely the whole story. Whether you're teaching in Dallas ISD, Houston ISD, or Austin ISD, understanding how to supplement your TRS pension through smart, compounding investments is one of the most powerful financial decisions you can make.

The Hard Truth: TRS provides a defined benefit pension based on your years of service and final average salary. For a teacher with 25 years of service, the standard replacement rate is around 60–65% — leaving a meaningful gap between your pension income and your pre-retirement lifestyle.

FAQ

Real questions Texas teachers ask.

Is TRS alone enough for retirement in Texas?
For most Texas teachers, TRS replaces about 50–65% of final salary. Comfortable retirement typically requires 70–90%, so a 403(b) supplement closes that gap.
Are Texas 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.
Does Texas's zero state income tax help my 403(b)?
Yes — withdrawals from a traditional 403(b) are not taxed by Texas, only federally. This typically means 4–10% more in your pocket annually compared to high-tax states.

▮ Recommended Resources

Official Teacher Retirement System of Texas Official TRS portal with benefit calculators and member services. Education Texas State Teachers Association Professional association for TX educators with retirement resources. Tax Texas Comptroller Confirms Texas has no state income tax. Investing TRS 403(b) Vendor List Compare approved 403(b) vendors.

▮ Latest News

TRS Texas 2024 TRS Cost-of-Living Adjustment Update → IRS 2024 403(b) Contribution Limits Increase to $23,000 → Texas Tribune Texas Pension Reform Bills to Watch →
COMPARE — see how Texas stacks up

▮ Other State Calculators

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