The 403(b) plan and the 401(k) plan are both tax-advantaged retirement savings plans sponsored by employers for their employees. The biggest difference in the 403(b) vs. 401(k) is that the 403(b) is strictly for government and non-profit employees while the 401(k) is for employees ...
In a 401(k) plan, employees can contribute a portion of their pre-tax income up to a certain limit set by the Internal Revenue Service (IRS). The contributions are invested in a variety of funds, such as mutual funds, stocks, bonds, and other financial instruments, depending on the plan...
A 401(k), as well as a 403(b) and 457, is a qualified employer-sponsored retirement plan. If your employer does not offer a 401(k) or other sponsored plan, you should probably just begin saving in a Roth IRA or traditional IRA. But if you have access to an employer plan — espec...
What Is a 401(k) Plan and How Do 401(k) Plans Work? Congress designed 401(k) plans to encourage Americans to save for retirement. A 401(k) plan is typically offered to people by private-sector, for-profit employers. When you have a 401(k) plan, you can set regular, automated cont...
Scott Holsopple