What Is A 403K

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A 403b is a tax-deferred retirement plan that is very similar to a 401k. That is, it allows you to set aside pre-tax dollars out of your paycheck to save for retirement – up to $16,500 per year, and for some people, the limit may be higher.

A 403(b) plan is a kind of defined contribution retirement plan that may be offered to employees of government and tax-exempt groups, such as schools, hospitals and churches.

Unlike 401 (k) plans which are offered by for-profit companies, 403 (b) plans are only available to employees of tax-exempt organizations. These are usually either schools, hospitals or religious groups. The names simply refer to the section of the tax code that outlines these plans.

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Unlike 401 (k) plans which are offered by for-profit companies, 403 (b) plans are only available to employees of tax-exempt organizations. These are usually either schools, hospitals or religious groups. The names simply refer to the section of the tax code that outlines these plans.

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