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One key difference between the 403 (b) and 401 (k) plans is who gets to use each type of plan: A 403 (b) plan is used for some employees in the public sector, school districts, churches and non ...
It’s like a 401(k), except for a different type of employee. A 403(b) is the retirement planning vehicle used by not-for-profit or other tax-exempt employers of nurses, doctors, teachers ...
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]
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 traditional 403 (b) plan offers several advantages: Pre-tax contributions: Pre-tax contributions reduce your taxable income in the year you contribute. Tax-deferred growth: Your contributions ...
A 403 (b) retirement plan is the type of retirement plan offered by schools, nonprofits and other tax-exempt organizations. These plans function similarly to 401 (k) plans and allow employees to ...
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