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A 403 (b) plan allows you to save on a tax-advantaged basis, deferring taxes on your income and any investment earnings or enjoying a tax-free benefit, depending on which plan you select.
403 (b) In the United States, a 403 (b) plan is a U.S. tax -advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501 (c) (3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States. [1] It has tax treatment similar to a 401 (k) plan, especially after the ...
In most respects 403 (b) plans 401 (k) plans offer the same benefits, whether that’s the ability to save for retirement in a pre-tax or after-tax account, invest in potentially high-return ...
Differences Between a 403 (b) Plan and a 401 (k) Plan Is a 403 (b) better than a 401 (k)? Both plans take a portion of your paycheck to invest in retirement funds.
See also Retirement plan Individual retirement account (IRA) Public employee pension plans in the United States 401 (k) 403 (b) - Similar to the 401 (k), but for educational, religious, public healthcare, or non-profit workers 401 (a) and 457 plans - For employees of state and local governments and certain tax-exempt entities
403 (b) contribution limits in 2023 and 2024 Contribution limits for 403 (b)s and other retirement plans can change from year to year and are adjusted for inflation.
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