Submitted by pentegra • August 28, 2018
www.pentegra.com
Both 401K and 403B plans are retirement plans that are sponsored by an employer. Both must meet IRS requirements to allow tax-free contributions. However, 401K plans are offered by for-profit companies whereas 403b plans are offered by not-for-profit organizations that are tax exempt under IRS Code 501(c)3, such as educational institutions, school districts, governmental organizations, religious organizations and hospitals.
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