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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 ...
Investment options: You can purchase potentially high-return investments such as mutual funds within a Roth 403(b) and enjoy tax-free growth. A 403(b) comes with other benefits as well.
It’s like a 401(k), except for a different type of employee.
Beginning in 2006, 403(b) and 401(k) plans may also include designated Roth contributions, i.e., after-tax contributions, which will allow tax-free withdrawals if certain requirements are met. Primarily, the designated Roth contributions have to be in the plan for at least five taxable years and you have to be at least 59 years of age.
In addition to 401(k) plans, there are also 403(b) plans for employees of public schools and certain tax-exempt organizations, and 457(b) plans for state and local government employees.
Yes, you can often get free financial advice from the company that manages your 401(k), your retirement accounts or even a robo-advisor service. However, free advice can be limited and may not ...
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