Posted on: 20th Jul, 2005 10:21 am
what is the difference bet 401k and 403k
Hi mbrown
Welcome to MortgageFit forum.
The 401(k) Plan is a retirement plan available to employees of profit and tax-exempt organizations.
But a 403(b) Plan is generally offered to employees of educational institutions and non-profit organizations.
Another difference lies in their investment options. A 401(k) participant can invest in purchasing individual stocks, mutual funds etc. On the other hand, the 403(b) Plan allows for investments in annuity contracts or mutual funds and money-market funds.
Moreover a 403(b) plan allows an employee to go for the Lifetime Catch-Up Contribution which is not available in the 401(k) Plan.
Hope this information will fulfill your needs.
For further reference visit our section on
401k-403b
401k
403b
Also sign up with us to get free advice on further queries.
Regards,
Sam
Welcome to MortgageFit forum.
The 401(k) Plan is a retirement plan available to employees of profit and tax-exempt organizations.
But a 403(b) Plan is generally offered to employees of educational institutions and non-profit organizations.
Another difference lies in their investment options. A 401(k) participant can invest in purchasing individual stocks, mutual funds etc. On the other hand, the 403(b) Plan allows for investments in annuity contracts or mutual funds and money-market funds.
Moreover a 403(b) plan allows an employee to go for the Lifetime Catch-Up Contribution which is not available in the 401(k) Plan.
Hope this information will fulfill your needs.
For further reference visit our section on
401k-403b
401k
403b
Also sign up with us to get free advice on further queries.
Regards,
Sam