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403(b) vs. 401(k): How they work. Both 403(b) and 401(k) accounts offer workers the ability to save money for retirement on a tax-advantaged basis: in traditional versions of the plans or Roth ...
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.
Also, the non-basis portion can be rolled over into a 401(k), if allowed by the 401(k) plan. Changing Institutions Can roll over to another employer's 401(k) plan or to a rollover IRA at an independent institution. Can roll over to another employer's Roth 401(k) plan or to a Roth IRA at an independent institution.
403(b) vs. 401(k) plans Like a 401(k), 403(b) plans can be funded with pre-tax or after-tax dollars. Pre-tax contributions grow tax-deferred until you withdraw them at retirement, at which point ...
Comparison. The following table outlines the basic similarities and differences: 403(b) Plan. 401(k) Plan. Eligibility. Work for a nonprofit or government entity. Work for any private employer.
When comparing an IRA vs. 401(k), each has unique benefits. Discover the pros, cons and which option may best fit your financial goals.
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