How does a 403(b)(7) Custodial Account work?
You set aside money for retirement on a pre-tax basis through a salary reduction agreement with your employer. You choose from the mutual fund investments offered by your designated brokerage firm, and your employer sends your contributions to the brokerage firm to be invested. Contributions and investment earnings grow tax deferred until withdrawal (assumed to be retirement) at which time they are taxed as ordinary income.
