403b Vs 401k: Differences Between Both The Tax-Advantaged Retirement Plans

Both 403b vs 401k plans offer tax advantages after retirement plans, which employers provide to their employees.

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For-profit companies can offer 401k plans to eligible employees who donate pre or post-tax funds through payroll deduction.

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Employees working in government entities or nonprofit organizations get access to 401k plans.

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While a 401k plan is subject to nondiscrimination testing, 403b plans are exempted from it.

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403b plans fall under income restrictions, while 401k plans don’t.

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403b Vs 401k: Differences Between Both The Tax-Advantaged Retirement Plans

Both 403b vs 401k plans offer tax advantages after retirement plans, which employers provide to their employees.

See Next

For-profit companies can offer 401k plans to eligible employees who donate pre or post-tax funds through payroll deduction.

401k Plans

See Next

Employees working in government entities or nonprofit organizations get access to 401k plans.

See Next

While a 401k plan is subject to nondiscrimination testing, 403b plans are exempted from it.

403b Plans

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403b plans fall under income restrictions, while 401k plans don’t.

See Next

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