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A 403 (b) is a retirement plan for tax-exempt employers, such as teachers, nurses and clergy. Learn how it works, its advantages and disadvantages, and how to choose investments and contributions.
403(b) Plan. 401(k) Plan. Eligibility. Work for a nonprofit or government entity. Work for any private employer. Contribution Limits. $22,500 per year in 2023, plus an additional $3,000 per year ...
A 403(b) plan is also an employer-sponsored retirement plan but is most often used by nonprofit organizations. It operates similarly to a 401(k), with the same contribution limits and tax treatment.
A 403 (b) plan is a retirement savings plan for public education, non-profit, and some other employers in the U.S. It has similar tax treatment to a 401 (k) plan, but different rules and regulations. Learn about its features, compliance, and history.
Finally, what most distinguishes the 403(b) plan from the 401(k) plan is who has access to each plan. The 403(b) is for school districts, churches, charities and some public-sector employees.
Learn about the different types of retirement plans in the U.S., such as defined benefit, defined contribution, and hybrid plans. Find out how they are taxed, regulated, and funded by the Internal Revenue Code and the Employee Retirement Income Security Act.
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