401k vs 403b comparison chart

401k vs 403b comparison chart. Feb 5, 2024 · Benefits of a 403(b) plan. These plans have the same contribution limits as a 403(b Mar 21, 2024 · IRAs vs. Both plans also offer catch-up contributions of $7,500 per year for those age 50 and older. The following chart compares the contribution limits for 457(b) plans and 401(k) plans for 2022. A 403b is an employer-sponsored plan provided Dec 5, 2023 · 403b vs 457b plans: catch-up contributions. Under ERISA, 401 (k) plans must perform annual nondiscrimination tests to ensure that highly compensated or management employees don't receive an unfair share of plan benefits. Dec 22, 2023 · A 403 (b) allows employee contributions up to $22,500 in 2023 ($30,500 for those age 50 or older), while IRAs only allow up to $6,500 ($7,500 if you’re age 50 or older). Feb 13, 2024 · In a traditional 401 (k), contributions are made pre-tax, whereas in a Roth 401 (k), contributions are taxed up front. 401(k), 457(b) public and other 403(b) plans. When comparing 403b vs. The main difference between the two is that employees of public schools and tax-exempt 501c3 entities are allowed to participate in a 403 (b). 403 (b) plans may have additional eligibility requirements Nov 2, 2023 · The SIMPLE IRA vs. Contribute $23,000 to a 403 (b) in 2024, compared to $7,000 with a Roth IRA. Employers set up these plans, such as 401(k)s and 403(b)s, to enable employees Participants in 401 (k) and 403 (b) plans that accept both Roth and traditional contributions can contribute either type or a combination of both. May 16, 2024 · Tax advantages of 403 (b) and 401 (k) plans. While a 401 (k) plan allows for the employee to decide how much he wants to contribute, the contribution amounts and levels of a 401 (a) plan are set by the employer. You must also begin taking a minimum distribution from the retirement plan when you reach the age of 70. The aptly named SIMPLE IRA, which stands for Savings Incentive Match Plan for Mar 13, 2024 · Retirement contributions to Roth 401 (k)s are made with after-tax dollars. As part of its total rewards package, the university offers an array of retirement options to help you meet your Feb 21, 2024 · One key difference between the 403 (b) and 401 (k) plans is who gets to use each type of plan: A 403 (b) plan is used for some employees in the public sector, school districts, churches and non Dec 20, 2023 · An employer-sponsored 401 (k) is one of them while indexed universal life insurance (IUL) is another. In What’s the same for every plan? • Minimum contribution is $5 per biweekly pay. 401(k): An Overview . May 6, 2024 · Here's how to compare 401(k)s, different IRAs, and retirement plans for self-employed people and business owners. Meanwhile, 403 (b) plans may have lower fees and expenses due to their association with May 14, 2024 · Thrift Savings Plan (TSP) vs. On the other hand, the 457 (b) plan provides greater You may choose to put money in the 457 Plan or the 401(k) Plan, or both, for a combined deferral of $46,000, or $61,000 if age 50 or older. Mar 27, 2024 · 403(b) Overview. 403 (b) plans are also tax-advantaged plans which means that contributions are not taxed Jun 13, 2023 · An additional unique feature of a 403 (b) plan is the ability to invest in annuities alongside other, more comprehensive investment options. 403(b) vs. Most people work at for-profit companies, meaning the majority of workplace retirement plan participants use a 401 (k. 401k retirement plan options, both have similar tax advantages but may differ in eligibility and investment options. 3 days ago · Instead, they offer other employer-sponsored plans, such as 403 (b) and 457 plans. Withdrawing money from the retirement plan incurs a tax penalty unless it is for a qualifying reason. Participants can make catch-up contributions from age 50. IUL is funded with after-tax dollars, so contributions have already been taxed, which is beneficial for potentially tax-free future income. Rollovers into the : Plan • Rollovers accepted only from: another Pre-tax 457 plan • Rollovers accepted only from: another Roth 457 plan • Rollovers accepted from: 401(k) plans, 403(b), 457 plans and IRAs Retirement Inquiry (via HR Connection) (614) 247-myHR (6947) (614) 292-7813 (Fax) hrconnection@osu. But there are differences, including on withdrawal rules. edu. 403 (b) vs. The main difference between the two plans is the type of employer sponsoring them. On the other hand, the 457 (b) plan has more accessibility because funds can be withdrawn without fees when the employee leaves the company. May 21, 2024 · The main difference between a 403 (b) and 401 (k) is the type of employer who offers them. Jan 19, 2022 · 2. Same as designated Roth 401 (k) account and can have a qualified distribution for a first-time home purchase. Both plans have similar rules for early withdrawals and penalties. Dec 19, 2023 · 403 (b) and 457 (b) $23,000 + $23,000 = $46,000 total. A 401 (k) plan offers the employee a range of investment products, while a 401 (a) plan Jan 12, 2024 · Key Takeaways. Examples of this type of plan include the 401(k) plan, 403(b) plan and 457(b) plan. It really depends on the how the plan will be used. 7. 464]) must still be followed for 403(b) plan failures occurring prior to January 1, 2009. In 2024, employees can save up to $16,000 in the plan (that’s up from $15,500 in 2023). As of 2023, the total contribution limit for a 401 (a) plan is $66,000, with a $7,500 catch-up contribution available for those aged 50 and over. 403b and 401k plans are employer-sponsored retirement plans that offer tax benefits and may include employer contributions. One major difference in eligibility between the plans is Contribution limited to $6,500 plus an additional $1,000 for employees age 50 or older in 2023; $6,000 plus an additional $1,000 for employees age 50 or over in 2021 and 2022. Apr 26, 2022 · Both retirement accounts offer similar tax benefits, but there are also some important differences between a 401(k) plan and a 403(b) plan. Now a cornerstone of retirement investing, 401(k) plans were first introduced in the early 1980s. A 401 (k) plan is typically offered by for-profit companies, whereas a 403 (b) is designed for employees of non-profit organizations, such as public schools, hospitals, and religious institutions. Jun 21, 2022 · Bottom Line. However, it also imposes penalties for early withdrawals. Some drawbacks to 401 (k)s include the fees and investment choices linked to individual plans. Both plans also allow for additional catch-up contributions of $6,500 per year for workers ages 50 and older. If you invest aggressively and earn average to above-average returns, your money can grow faster, leaving you with a bigger . 5. $23,000 per year is the standard contribution limit for a 403b Mar 14, 2024 · One of the factors that most distinguishes the 401 (k) plan – as well as the 403 (b) 457 plans, since they all have the same limits – is the very generous contribution amounts. It allows employees to contribute pre-tax or after-tax (Roth) dollars to the plan. Roth IRA comparison, both offer tax-free growth and tax-free retirement income. Get additional money toward your retirement savings just for contributing. S. First, they have different annual contribution limits. These include: Contribution limits: These plans have similar contribution limits. The investments grow, then you pay taxes on your distributions. To reiterate, both SIMPLE IRAs and 403 (b) plans are funded by pre-tax income. 08%). A 403 (b) is for non-profit organizations, or employers defined as 501 (c) (3) tax-exempt organizations, public schools, hospitals, and some government agencies. Eligibility age. The limitations on terminations and mergers between 401 (k) and 403 (b) plans generally dictate that an organization maintaining a plan will usually continue with that same type Mar 14, 2023 · 403 (b) vesting is typically faster than 401 (k) vesting. 401 (k) plan. Only public sector employees have access to a 403(b) qualified retirement plan. At the newly redesigned 403bCompare, you can: Learn about the advantages of a 403 (b) account. Nov 6, 2023 · A 401 (k) can have the potential for more growth than a pension plan. 401 (k) decision is, at its core, a choice between simplicity and flexibility for employers. 403b: Comparison Chart May 23, 2024 · A SIMPLE IRA is basically a start-up retirement savings plan for small businesses. 403 (b) plans, on the other hand, are offered by tax-exempt and nonprofit organizations. A 403b plan and a Roth individual retirement account (IRA) are tax-qualified plans offering tax advantages for retirement investing. 401k vs. R. 403b: Which is better? 401(k) and 403(b) plans have a lot of similarities, but one isn’t better than the other. Feb 15, 2024 · The 403 (b) plan's best feature is the higher total contribution limit of $69,000 in 2024. This is one of the more significant differences between the 403 (b) and 401 (k) plans. Loans Up to two loans allowed on your account at any time; maximum allowed is 50% or your account balance or $50,000. At a glance: 401 (k) plans are common in for-profit companies and offer more investment options. In contrast, this requirement only applies to 403 (b) plans if Jan 23, 2024 · When trying to understand the difference between a 401 (a) plan vs. 457 (b) plans have both “Age 50” and “Pre-Retirement” catch-up contribution Both 401k and 403b may as well include Roth contributions. The 403 (b) plan often includes employer matching, which can enhance your savings. Employees eligible for 401 (k) plans typically include full-time and part-time employees. That’s just one reason why we are the #1 choice for educators in K-12 schools in the U. 02% - 0. With traditional accounts, withdrawals of pretax contributions and earnings are taxable and may be subject to a 10% early withdrawal penalty if taken before age 59-1/2. IULs tend to have have 403(b)(7) – type of 403(b) plan commonly offered to educational employees; 403(b)(9) – type of 403(b) plan commonly offered to church organizations; 401k vs. ‍. B. A 401 (k) is more expensive for employers due to higher administrative costs than a 403 (b). Takeaways on 401k vs 403b. Or, your plan may not offer the investments Comparing 403 (b) and 457 (b) Plans. 457 plans offer generous catch-up contributions for workers who are approaching retirement age Oct 5, 2018 · The retirement age for the 401a and 403b retirement plans is 59. If one of the plans you participate in is a 457 (b), then you can save the maximum amount in both the 457 (b) and the other plan. While 403(b) plans and 401(a) plans operate in a similar way, there are key differences. Other employer-sponsored plans include pensions and profit-sharing plans. A 457 retirement plan is similar to a 401k and 403b plan, with the exception that early withdrawals can be made without the 10% penalty. Thus, the maximum deferral limit of $22,500 Part of the PATH Act enables Savings Incentive Match Plan for Employees of Small Employers Individual Retirement Accounts (SIMPLE IRA) the option to accept rollovers from other retirement plans. The Ohio State University supports the efforts of faculty and staff to plan a fulfilling, financially secure retirement. No. In 2022, the Internal Revenue Service allows workers to contribute up to $20,500 to a 401(k) or 403(b) plan; in 2021 the limit was $19,500. Employer-sponsored plans, such as 403 (b)s and 401 (k)s, can be important tools to help you save for retirement. If you contributed $10,000 to your 401 (k), you'd be limited Jan 4, 2024 · A 403 (b) plan is also exempt from many of the provisions of the Employee Retirement Income Security Act. 403 (b Nov 2, 2023 · Only an employer can set up a 403(b) plan, which it then offers to its workers. It’s worth noting that most colleges and universities offer attractive employer contributions. The equivalent for teachers and some non-profit employees is the 403(b). 401 (k) plans are offered by private, for-profit companies. May 20, 2024 · The main difference between the two is that 401 (a) plans are sponsored by state and local governments and some nonprofit organizations, while 403 (b) plans are sponsored by certain nonprofits and public school systems. NerdWallet Compare, Inc With a 401 (a) plan, the employer can make contributions, and may require employees to contribute to the plan as well. Think of positions like government Nov 24, 2022 · However, the more limited procedures (found in Revenue Procedure 2008-50 [2008-35 I. Feb 9, 2022 · The main difference between a 403 (b) and a 401 (k) is the fact that 401 (k)s are offered to employees of private companies, whereas 403 (b)s are offered only to public and non-profit employees Both 457 (b) plans and 403 (b) plans enable participants to contribute pre-tax dollars to a retirement account, which then grows tax-deferred. Just as is the case for small 401(k) plans, the cost of running small 403(b) retirement plans varies widely by provider. g. Jan 10, 2024 · A 403 (b) plan allows you to save on a tax-advantaged basis, deferring taxes on your income and any investment earnings or enjoying a tax-free benefit, depending on which plan you select. It's up to each organization whether they offer one and what their specific terms are. 457 (b)s only allow $22,500 in contributions from any source in 2023 ($23,000 in 2024 Jan 16, 2024 · The limit on employee elective deferrals to a 401(k) or 403(b) plan is $23,000 in 2024. Any early withdrawals are subject to the 10% additional tax. While contribution limits for retirement plans change every year, the annual limit for a 401(a) plan is higher than a 403(b) plan. A 401(k) and a 403(b) both: Have a contribution limit of Plan termination; Required minimum distributions under Internal Revenue Code Section 401(a)(9) Yes: Yes: Rollovers to other eligible retirement plans (401(k), 403(b), governmental 457(b), IRAs) Yes: Yes: Availability of statutory period to correct plan for failure to meet applicable requirements Feb 15, 2024 · Generally speaking, 401 (k) plans offer a more expansive investment range than 403 (b), as they may offer mutual funds, annuities, individual stocks, and bonds. They even have the same annual contribution limits. Both 403 (b)s and IRAs grow tax-free, and earnings are typically only taxed at withdrawal. Like 401 (k) plans in the private sector, employees can make contributions to 403 (b) plans on a pre-tax basis. Contribution limits: Both 401 (k) and 403 (b) plans have the same annual contribution limits. • Cost to participate is 0. A 401 (k) allows you to invest money on a tax-deferred basis while also enjoying a tax deduction for contributions. Learn the largest similarities and differences between a 457 plan versus a 401(k). If you work for a charity or government entity, like a school or a municipal department, you may Jun 5, 2023 · Investment choices. Employers direct these contributions to specific 403 (b) investment products Nov 3, 2020 · Here are some of the differences: IUL and 401 (k) plans fall under different sections of the IRS tax code; life insurance under Section 7702 and 401 (k) plans under Section 401 (k). Both 457 (b) and 403 (b) retirement plans are offered to public service workers but 403 (b) plans are also Sep 8, 2023 · A 401 (k) may also carry fewer fees compared to a 457 (b) plan, and have a wider range of investments to choose from. Roth 401k: The tax treatment of contributions and earnings differs between the two. A 401(k) is a retirement plan offered by a private-sector employer. Feb 11, 2024 · For-profit companies typically offer 401 (k) plans. Eligibility. You can Feb 5, 2024 · The 457(b) plan. May 1, 2024 · In the 401 (k) vs. A 403(b) and 401(k) do the same things in most regards. Our 403 (b) plan is designed to meet the unique needs of educators and non-profit employees across the country. Employees who participate in either plan can enjoy pretax contributions, tax-deferred growth on earnings, and potentially Most owners of traditional IRAs and employer-sponsored retirement plan accounts (like 401(k)s and 403(b)s) must withdraw part of their tax-deferred savings each year, starting at age 72 (age 70½ if you attained age 70½ before 2020). The advantages of contributing to a 403(b) account include: Tax advantages: Overall, 403(b) accounts carry the same tax advantages as 401(k)s and IRAs. Depending on Aug 31, 2022 · One major distinction between the two is the type of employer that can offer each plan. 401 (k): Two Ways to Save for Retirement. 403 (b) plans are for non-profits and government employees. A 457(b) plan, also called a 457 plan, is a retirement plan available to government employees and some nonprofit employees. Traditional 401 (k) contributions are made with pretax dollars. Traditional 403 (b) and 401 (k) plans allow employees to contribute pre-tax earnings to their accounts. 403b plans may have higher costs and fees. 15-year rule of service is only meant for 403b participants while non-discrimination test is restricted to the 401k retirement plan. 401(k) Plan Comparison Chart. • Unlimited contribution changes efective within timing restrictions. In 2024, the max you can save with a 401 (k) or 403 (b) plan is $23,000 annually, plus $7,500 in catch-up contributions for those The short answer is that there is no definitive answer as to whether the 401 (k) or the 403 (b) outshines the other. Your employer matches your contributions. 1 and help thousands of non-profit employees realize their Feb 15, 2024 · A 403 (b) plan, sometimes known as a tax-sheltered annuity (TSA) plan, is a retirement plan offered by public schools and certain 501 (c) (3) tax-exempt organizations. A 457 plan is offered to government workers. SIMPLE IRA: Distributions. This owes to the fact that a 401 (k) plan can be set up with a mutual fund family, or even a diversified investment broker. Meanwhile 403b plans are generally provided by non-profit organizations or government employers. 457(b) Plan vs. What isn’t different: The 401 (k) contribution limit applies to both Nov 24, 2023 · The primary difference between the 401 (k) and 403 (b) lies in the types of organizations that offer these plans. If you withdraw less than the RMD amount, you may owe a 50% penalty tax on the difference. Sponsors of 401 (a) plans generally make it mandatory for eligible workers to enroll in the plan, but contribute to their employees’ plans as well. Although this chart is designed to provide accurate and authoritative information with respect to the subject matter being covered, it is expressly May 1, 2024 · 403 (b)s are employer-provided plans like a 401 (k), but only tax-exempt organizations, like public schools, qualify. The 2024 contribution amount for 401 (k)s and 403 (b)s is $23,000, or $30,500 if you are Since 1859, Equitable has helped people build and secure their financial futures. 401(k) –Comparison ERISA 403(b) plan 401(k) plan Contribution Limits 415 limit –the lesser of 415 compensation or the 415 limit as indexed: 2019 limit is $56,000 Includes employee and employer contributions Excludes age 50 catch-up contributions Note: The 15-year special catch-up is included in the 415 limit. A holder of a SIMPLE IRA may withdraw money from the IRA at any time; however, if Sep 1, 2019 · A 403 (b) plan is tax-deferred retirement savings plan offered to public school employees through their school districts or open-enrollment charter schools. Yes. You contribute with pre-tax dollars. a 403 (b) plan, it’s important to know that a 403 (b) plan typically offers annuity options from insurance providers, while a 401 (a) plan usually facilitates mutual fund investments. Roth IRAs are individually owned, giving you more control over your provider and investments. 401 (k) plans are offered by private employers, while 457 plans are offered by state and local 403bCompare is a state-sponsored website provided by CalSTRS that gives you an easy and transparent way to compare investment fees, performance and services for the 403 (b) plans your district offers. Feb 3, 2023 · IUL contracts protect against losses while offering some equity risk premium. Mar 6, 2024 · While both plans are governed by the IRS, 401 (k) plans are subject to the Employee Retirement Income Security Act (ERISA), while 403 (b) plans may be exempt from certain ERISA requirements. Apr 18, 2024 · 457 vs. Participants may make catch-up contributions in the three years before retirement. These base numbers increase to $23,000 and $7,000 in 2024. While the combined 457 (b) limits are lower, the 457 (b) elective deferral limit is not offset by 401 (k) or 403 (b) deferrals. Typically, 401k plans are offered by private, for-profit companies. Mar 23, 2024 · Some employees enrolled in 403b plans, such as teachers in public schools, can also enroll in another retirement plan called the 457 plan. These plans focus more on annuity options for stable retirement income. The average fees associated with operating small 403(b) plans vary widely. Same as 403(b) – then will be subject to new plan rules (10% penalty on early withdrawals). Whether or not you have a 403 (b) or a 401 (k) depends on the kind of employer you work for. 457b. This allows contributors to accumulate more funds in the retirement account. 12% of your account value a year, capped at $2,000 per year, plus 50 cents per month per account. 403 (b) plan. On the other hand, a pension plan, also known as a defined-benefit plan, promises a specified Apr 23, 2021 · Both plans serve a similar function, in that they help you save for retirement. A 401 (k), on the other hand, is for for-profit companies. You can use a 403b to invest in mutual funds and annuities. IRAs and 401 (k)s do not offer the same downside protection, though there is no cap on returns. Below, we cover the basics of 457(b)and 401(k) plans, look at the key differences between the two plans, and explore their respective benefits. 401k: Similarities and Differences. Traditional 401k vs. Feb 22, 2024 · A 403b is a tax-advantaged retirement account available to employees of organizations like hospitals, schools, nonprofits, and churches. If you participate in a 401 (k) and a 403 (b), then you can only save $23,000 total between the two. This chart highlights some of the basic RMD rules as applied to IRAs and defined contribution plans (e. 401(k) Plans: 2024 Limits and Policies 401(k) Plan: Individual Retirement Account: Annual Contribution Limits (if younger than 50) $23,000: $7,000: Catch-up Contribution Limits (if older Review a required minimum distribution table that compares IRAs and defined contribution plans, such as 401(k), profit sharing and 403(b) plans. Indexed universal life insurance allows you to secure a death benefit for your loved ones while accumulating cash value that you Costs. While both plans offer tax-advantaged savings, they cater to different types of employees and have unique features. Dec 21, 2023 · The required minimum distribution (RMD) age for both 401 (k) and 403 (b) plans is 72. 457 (b) plans and 401 (a) plans also have different maximum annual contribution limits. 415 limit –the Nov 6, 2023 · In a Roth 401(k) vs. 401 (k) plans and 457 plans are both tax-advantaged retirement savings plans. The 457 (b) is offered to state and local government employees, and the 457 (f) is for top executives in Nov 3, 2023 · The 403 (b) has a much higher limit than the 457 (b), which lacks a separate contribution limit for employers. Learn the definitions and differences between the two. Can money be rolled in from a 401(k) or other qualified plan, or from a 403(b) plan? Yes, for a governmental 457(b) plan; no for nongovernmental plans. The 401k retirement plan is restricted to profit organizations, while 403b is for employees in non-profit organizations. On or after attainment of age 59½. There are many takeaways when investing in While participation in a 401 (k) plan is not mandatory, with a 401 (a) plan, it often is. Both of these are tax-deferred retirement savings programs that your employer might offer. As both plans ran the congressional approval Dec 22, 2023 · Ultimately, 401 (a) and 403 (b) plans function similarly. The BrightScope data reveal that total plan fees Jan 5, 2024 · A 403(b) plan and a Roth IRA are both vehicles used for retirement savings. As a general rule, a 401 (k) plan will offer more investment options than a 403 (b). We’ll unpack some other differences in a minute, but that’s the gist of it. 401 (a) plans do not permit catch-up contributions. ) Not-for-profit and public sector institutions, meanwhile, use 403 (b) plans. Roth 401 (k) withdrawals in retirement are tax-free but Mar 4, 2023 · Another key distinction between 401 (k) plans and 403 (b) plans is that 403 (b) plans tend to have less regulatory oversight than 401 (k) plans. The main differences lie in who is eligible to enroll in each as well as the plan design of the one (s) that an employer happens to offer. Mar 29, 2024 · Beyond both being employer-sponsored tax-advantaged retirement savings plans, 401 (k) and 403 (b) plans have many other similarities. When employer-sponsored retirement plans offer matching contributions, the vesting period, or the time an employee must work for an employer to gain ownership of employer-contributed funds, is usually shorter in 403 (b) plans compared to the typical 401 (k) vesting. The catch-up contribution options differ between these two plans in the following ways: 403b. This means that when distributions are made at retirement, the distributions are taxed, since the money was not taxed when actually earned. Employee contributions are capped at $22,500 ($30,000 for Feb 23, 2024 · When to consider a 403 (b) A 403 (b) might be a good option if: You want a higher contribution limit. Mar 23, 2022 · 403 (b) vs. While both 401 (k) and 403 (b) plans may have administrative fees and expenses, 401 (k) plans might have slightly higher costs due to the broader range of investment options and additional services provided by for-profit financial institutions. Roth 401 (k) and Roth 403 (b) accounts are exempt from RMDs starting in 2024. When participants retire and begin withdrawing funds, they are taxed as ordinary income. This plan makes it easy for small business owners to save for their own retirement and contribute to their employees’ retirement savings as well. 403(b) Both 401(k) plans and 403(b) plans are offered through Jan 25, 2023 · In both 401 (k) and 403 (b) plans, the combined elective deferral, and employer contribution limit is significantly larger—up to $66,000 in 2023, depending on compensation. Not Available Jul 4, 2023 · Differences between 401k vs 403b plan: 401k plans are available to for-profit organizations, while 403b retirement plans are offered to tax-exempt organizations or government entities. Without considering other adjustments, if you W Rollovers accepted from IRA, 401(a), 401(k), 457(b) public and other 403(b) plans—subject to the rules of the new plan W Distribution of rollover account permitted at any time, if plan allows W Not permitted from 457(b) private plans W Accepted, if new plan permits, from IRA, 403(b), 401(a) and 401(k) plans—10% penalty on early withdrawal Modern 401(k) plans, however, can offer mutual funds that are 20-50x less expensive (0. Jul 3, 2018 · The 403 (b) and 457 (b) plans differ in that the 457 (b) plan lets workers who are within three years of normal retirement age as specified in the plan to make special catch-up contributions. Feb 6, 2024 · 457 plans are commonly offered to government workers, while private-sector companies offer 401 (k)s. In contrast, 403 (b) tends to focus only on mutual funds or annuities investments. A 403 (b) has a larger annual contribution limit at $23,000, while Roth IRAs max out at $7,000 in 2024. Both plans are tax-advantaged, employer-sponsored retirement plans. Some plans, for instance, may charge more in administrative fees and cut into returns. Find your employer’s approved list of 403 (b Differences Between a 401(a) and a 403(b) plan. Feb 15, 2024 · A 403 (b) is similar to a 401 (a), but it is offered by non-profit organizations rather than for-profit companies. Roth IRA head-to-head, this gives Roth IRA accountholders a greater degree of investment freedom than employees who have 401 (k) plans (even though the fees charged for 401 (k)s Mar 19, 2024 · 403(b) and 401(k) plans have the same contribution limits. , 401(k), profit-sharing, and 403(b) plans). qm al iw nu jk mk ht ek pe de