What Is The Difference Between A 401K Plan And A 403B Plan

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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• Category: Finance
• Tags: 401k, 401k plan, 403b, 403b plan