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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.
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]
Matching funds are free money. Image source: Getty Images. Maximize matches for better investment growth. Finally, note that while many 403(b) plans don't offer matching funds (unlike 401(k) plans ...
Cetera Financial Group (commonly referred to as Cetera) is an independent wealth hub and financial services provider comprising, among other companies, one of the largest families of independent registered investment advisers and broker-dealers in the United States.
403(b) plan limits. 2023. 2024. Change. Maximum salary deferral for workers. $22,500. $23,000 +$500. Catch-up contributions for workers 50 and older. $7,500. $7,500
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.
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