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403b Vs. 401k: What’s The Difference?
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[QUOTE="Yusra3, post: 286594, member: 31907"] A 403(b) and a 401(k) are both types of employer-sponsored retirement plans. The main difference between the two is that a 403(b) is available to employees of certain tax-exempt organizations, while a 401(k) is available to employees of for-profit companies. Some other key differences between the two types of plans include: 1. The maximum annual contribution limit is generally higher for 401(k) plans than for 403(b) plans. 2. Some 401(k) plans offer a "matching" contribution from the employer, while this is less common with 403(b) plans. 3. The investment options available under a 403(b) plan may be more limited than those available under a 401(k) plan. Overall, the main difference between a 403(b) and a 401(k) is the type of organization that can offer the plan to its employees. Both types of plans can be good options for saving for retirement, so it’s important to understand the specific features and rules of the plan that’s available to you. [/QUOTE]
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403b Vs. 401k: What’s The Difference?
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