What Is A 403B Vs 401K?

  1. 280 POINTS
    Matthew Schiff
    President, Schiff Benefits Group, LLC,
    They are primarily the same thing (an employer sponsored retirement plan) but one is offered by a for profit employer and the other (403b) is offered through a government entity such as a municipality or school district. The contribution rules are similar and allow employees to put money away pre tax for retirement.
    Answered on November 30, 2014
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The Internal Revenue Code allows an employer to establish a defined contribution pension plan under paragraph 401(k.) Certain non-profit organizations can provide their employees access to a retirement savings plan under paragraph 403(b.) The 403(b) is usually in addition to the pension plan established by the school district or hospital concerned.
    Answered on January 14, 2015
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