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Is a 403B a 401(k)?

A 403 (b) plan is a retirement plan, similar to a 401 (k) plan, for employees of public schools, nonprofits, and religious institutions. 403 (b) plans resemble 401 (k) plans because they have comparable structure, contribution limits, and eligibility criteria. What are the differences between 401 (k) and 403 (b) plans?

What is a 403(b) plan?

A 403 (b) plan is a tax-advantaged retirement savings plan for teachers, nurses, and other employees of nonprofits and government agencies.

What is a 403(b) tax sheltered annuity plan?

The 403 (b) Tax-Sheltered Annuity Plan serves employees of public schools and tax-exempt organizations. Contributions to 403 (b) plans are made through payroll deductions. The IRS limits how much employees can contribute to their 403 (b) plans.

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