401(k) and 403(b) Retirement Plans
Qualified Retirement Plans are available in different forms. The most familiar plan is the 401(k) or 403(b) plan structure as it is available through most employers. Not all 401(k) or 403(b) plans are the same. Plan Sponsors (employers) have the ability to adjust plan provisions to meet specific needs of the company. Read details below for different examples.
A 401(k) plan is an employer sponsored, qualified retirement plan that allows eligible employees to save and invest for their own retirement on a tax deferred basis.
401(k) plans can be offered with different features and provision.
A 403(b) plan, also known as a tax-sheltered annuity plan, is a retirement plan for certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers.
A 403(b) plan allows employees to contribute some of their salary to the plan.