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A 403 (b) retirement plan is an employer-sponsored plan for employees of public schools and certain 501 (c) (3) tax-exempt organizations. Also known as a tax-sheltered annuity plan, a 403 (b) is ...
Investment options: You can purchase potentially high-return investments such as mutual funds within a Roth 403 (b) and enjoy tax-free growth.
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 ...
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.
A 401 (k) plan may also offer more investment choices, particularly with regard to potentially high-return investments such as mutual funds, while 403 (b)s may offer a narrower selection.
Maximize matches for better investment growth Finally, note that while many 403 (b) plans don't offer matching funds (unlike 401 (k) plans, where matching money is common), some do.
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