Getting began could really feel overwhelmingfortunately we're right here to assist. It's very common to advise younger people to . In this episode, you'll learn the differences between the 403b and the 457b. % PDFsharp Version 1.50.4440.0 (verbose mode) Additional Features of a 401k Annuity {6}. partridges, pheasants, and quail are members of which group? Generally, penalty-free distribution from a 403(b) cannot occur until the participant: Reaches age 59 1/2 Separates from service in the year turning 55 (and must be retired) Retire before . 403b vs 403b with prudential gia - norkorach.news Random Duck Race Generator, Kagaya Ubuyashiki Mort, <>stream No matter how simple or complex, you can ask it here. /CS /DeviceRGB Contribution maximums. Returns as of 03/04/2023. Stay mindful of the rules and fees to help your retirement savings grow as quickly as possible and avoid unnecessary penalties. Investor Junkie is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. (Estate tax may still apply.) q6ieG.(6VvKgFQ|Ph:ep\45m{[]q~7tE?KE*gxW+zV:_JWlEux3Sp%w$)x2L Both offer federal income tax advantages. >> The annual contribution limits for 403(b) accounts are $22,500 (2023 . Below are examples of the . You know what they say; it's never too young to start saving for retirement. Oxford Bcl Student Profile, Youre one of the lucky ones, many 403b providers dont offer Vanguard. Other Resources: https://podcasts . << Both plans allow you to also pay up to $6,500 per year into a Roth provision in your plan, or $7,500 if you are age 50 or older. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Can You Actually Retire a Millionaire With ETFs Alone? How does this look at the end of a 40-year career? /F3 49 0 R Brand new nurse-enrolled in pension, now to choose other retirement options. "Roth Account in Your Retirement Plan.". Retirement Plans | Icahn School of Medicine >> And you can do even better than that by investing in low-cost index funds. Market-beating stocks from our award-winning analyst team. << CN=[= |j9kErj:}^NOMldDh11,?! << All employees are eligible to participate in any of the Supplemental Retirement Plans (SRA) available through the University of Maryland. This is in part because they are buried in the literature describing the investment vehicles. Otherwise, you will be subject to the 10% early withdrawal penalty tax in addition to ordinary income tax. HigherEd Retire. 403(b) vs. Roth IRA: Definition & Comparison | Seeking Alpha The IRS limits IRA deductibility if you are covered by another retirement plan and your combined income exceeds certain thresholds. 403(b) vs. Roth IRA: Which Retirement Plan Is Best - SmartAsset Both plans allow you to borrow up to 50% of the vested balance in your plan, not to exceed $50,000. Both offer federal income School districts typically offer 403(b) plans to their  . /S /Document << It was pitched to me as a no-brainer investment and as a 22 year old with a decent amount of financial literacy I thought it . IRA vs 403b | Which Account Is Better For You? - Finance Futurists Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. That is said and done. Making the world smarter, happier, and richer. /K [11 0 R 17 0 R 22 0 R 24 0 R 45 0 R 46 0 R 47 0 R 62 0 R 63 0 R 64 0 R 65 0 R 66 0 R 88 0 R 103 0 R 104 0 R 105 0 R 110 0 R 139 0 R 154 0 R 155 0 R 156 0 R 157 0 R 158 0 R 159 0 R 160 0 R 173 0 R 174 0 R 175 0 R 176 0 R 177 0 R] Thats $308,359 divided by the $1,363,183 Sam would have ended up with had his 403(b) plan had the same fee structure as Taras 401(k) plan. %PDF-1.4 4 0 obj %-------------------------------------------------------------------------------------------------- There's also an option for the employer to match part of the employee's contribution. Discounted offers are only available to new members. Whats the Difference Between Saving and Investing? Funds that are generally withdrawn from a 403(b) plan before age 59 are subject to a 10% penalty. Take advantage of the tax savings by setting up a plan today! For 403(b)s without ERISA protection, accounts may lack the same level of protection from creditors as plans that require ERISA compliance. An IRA is a self-directed account that comes with more options than a 403(b). 403b vs 403b with prudential giacat magazines submissions. I am 28 year old public high school teacher who has been contributing $100/check to an AXA/Equitable 403(b) since I started in 2015. Smart Retirement Solutions for 403 (b) Plans. The 403(b) plan is in many ways similar to its better-known cousin, the 401(k) plan. 403B vs. Roth 403B | Pocketsense >> Its similar to the more commonly known 401(k) account, which is more often offered by employers in the private sector. %-------------------------------------------------------------------------------------------------- Like the more well-known 401(k) plan, there are two main types of 403(b) planstraditional or Rothand the big difference between them is how they're taxed. Great compilation of information on 403b plans and common misconceptions about them. by ruralavalon Wed Aug 09, 2017 9:03 am, Powered by phpBB Forum Software phpBB Limited, Time: 0.278s | Peak Memory Usage: 9.37 MiB | GZIP: Off. ", Internal Revenue Service. All of my portfolio is in retirement accounts; 50% is invested in stocks (70% S&P index funds, 30% international funds); the other 50% had been invested in an intermediate bond fund (FTBFX). /ProcSet [/PDF/Text/ImageB/ImageC/ImageI] /ExtGState A. 10 0 obj % PdfSharp.Pdf.Advanced.PdfContent Contributions are made with after-tax money so that all withdrawals in retirement are free from income taxes. These solutions provide easy, real-time access to all plan details through its proprietary conflict-free open . This is a common question that school district employees have when deciding where to put additional funds. By forgoing the tax break now, you earn the right to withdraw money from your Roth account tax-free in retirement. Both plans provide for employer matching contributions. mount sinai 403(b) retirement plan with prudential gia - plan id 406138 new york eye and ear infirmary 403(b) plan - plan id 407362 continuum health partners, inc. 403(b) plan - plan id 407360 mount sinai 403(b) retirement plan - plan id 406344 mount sinai frozen 403(b) immediate vesting plan - plan id 151413 The main difference between 401(k) and a 403(b) retirement plan is the type of employer that offers them: 401(k)s are offered by for-profit, private-sector companies, while 403(b)s can be found at nonprofits, churches and certain government agencies . A Roth option, available in some company 401(k) retirement plans, permits an employee to contribute after-tax dollars to an account. Not to mention your money is locked up for decades! The difference between the two terminal plan values? Retirement Solutions for 403(b) Retirement Plan | 403(b) Retirement << Buy an ETF and invest every paycheck. << 403b plan is a retirement plan wherein the contributions are not taxed until they are withdrawn upon retirement. We do intensely practical right diagnostics according to the needs of the customer and then build custom software solution for your company, organization any huge and little. If your employer offers a 403(b) and a 401(k) you can contribute to both but your aggregate contribution cannot be more than the annual limit ($20,500 in 2022 and $22,500 in 2023)not counting any catch-up contributions. % Objects: 119 If you have an existing 403 (b) tax-deferred arrangement account with a prior employer, you can transfer or roll over that account into the plan on becoming a participant in the plan. Full article available in original format here. by Beginner1 Sun Nov 01, 2020 9:46 am, Powered by phpBB Forum Software phpBB Limited, Time: 0.301s | Peak Memory Usage: 9.36 MiB | GZIP: Off. /Creator (PDFsharp 1.50.4440-wpf \(www.pdfsharp.com\)) Contributions to 403(b) plans are made through payroll deductions. With a 457 plan, if you are within three years of your normal retirement . Your 403(b) retirement plan is probably ripping you off unless - reddit /Resources Accounts may lack the same level of protection from creditors as plans that require ERISA compliance. K5||Q$r";eNH~L"%"ci:,iX"6&, ]p+ iM&t1k6]D4YH[6S[L$qRU-Y,jeT@ !Bgq2kol't5EVu".WUSp>K-[485uhe*gK:"uu/Z_tqHV)dJ|j8F@6TxFB'-S=kbFy_(79 WW3Ok[`fho*,UsJ nn[ 403b vs 457 comparison chart. Hold and you will pay 0% tax. A 403(b) is a retirement plan provided by employers in nonprofit organizations. >> 401(k) and 403(b) Plans: What's the Difference? - Investopedia PDF Section1 - Tiaa << /MediaBox [0 0 792 612] 403b vs 403b with prudential gia. >> ,Tqi^v+wvm`b|c6U7MHT0` %-------------------------------------------------------------------------------------------------- If youve worked for your employer for at least 15 years and have a 403(b) plan, then you can contribute an additional $3,000 per year even if youre younger than 50. /Count 12 401 (k) Plans A 401 (k) plan is. You can trust the integrity of our balanced, independent financial advice. Jun, 05, 2022 /Fm0 61 0 R /XObject 3 0 obj % PdfSharp.Pdf.PdfViewerPreferences Investor Junkie does attempt to take a reasonable and good faith approach to maintain objectivity towards providing referrals that are in the best interest of readers. ", Internal Revenue Service. These retirement accounts are typically offered by non-profit employers . Shelby Howard September 2, 2021. 403b vs 403b with prudential gia - trsys.digitalmaestros.in ", Code of Federal Regulations. /GS0 12 0 R See below. In both case, it will be possible to contribute to both accounts in order to maximize your pension savings. Canal Villere New Orleans; Daisy Chain Topology Advantages And Disadvantages 403(b) vs. 401(k): What's the Difference? - Ramsey However, they will owe taxes on any employer match contributions when the money is withdrawn. Have a question about your personal investments? Any other advice for deductible contributions? >> A fixed indexed annuity can offer protection from market loss and opportunities for growth A xed annuity with a guaranteed lifetime withdrawal benet can provide protected lifetime income and guaranteed growth without exposure to market risks and principal protection Learn about our annuities Register for a New Account And unlike the usual retirement plan catch-up provisions, you don't have to be 50 or older to take advantage of this as long as you worked for the same eligible employer for the whole 15 years. You can contribute up to $45,000 by maxing out both plans for 2023 or, if you turn 50 in 2023 or are older . /Group A 457 vs. a 403(b) for Retirement Savings - US News & World Report If an employee has 15 or more years of service with certain nonprofits or government agencies, they may be able to make additional catch-up contributions to a 403(b) plan. /Contents 10 0 R Some plans are limited to half-dozen mutual funds or exchange-traded funds (ETFs). A 401k retirement account is available for employees working for for-profit firms, and a 403b account is available to . Investor Junkie has advertising relationships with some of the offers listed on this website. Financial incentives to sell the . Build a solid financial future. >> The main difference between 403(b) and 401(k) accounts is that 401(k)s are offered by for-profit businesses and 403(b)s are only available to employees of: by Stinky Thu Oct 29, 2020 2:35 pm, Post 9 0 obj % PdfSharp.Pdf.PdfPage /PageMode /UseNone This is the reason why 403(b) plans are often referred to as tax-sheltered annuities or TSAs. Mutual Funds, annuities, stocks and bonds. In bankruptcy 7, we'll be going over the similarities and permutations between 401(k) and 403b, how each and every works, and sundry other strategies chances are you'll broaden your retirement monetary . Other than those two options, you can also lobby your employer benefits department to either switch retirement plans perhaps over to a 401(k) or to add more low-cost investment options to the 403(b) plan. Participants must reach age 59 before withdrawing funds or get slapped with an early withdrawal penalty. A 403(b) may be either tax-deferred, meaning your contributions reduce your taxable income this year and you pay taxes on distributions in retirement, or a Roth 403(b), meaning you pay taxes on your contributions this year and your money grows tax-free afterward. Certain nonprofits or government agencies also allow employees with 15 or more years of service to make additional catch-up contributions. "Retirement Topics - 403(b) Contribution Limits. endobj Loan provisions. /Length 3238 Ive made the switch to mutual funds but cant do the IRA because of exceeding the threshold. Rollovers or transfers. 2021 403b vs, 401k comparison chart Feature 403b 401k Eligible employer Educational organizations and nonprofi t organizations under 501c3 of the IRC Any employer Eligible employees All employees but may exclude: Employees who work less than 20 hours per week Professors on sabbaticals Certain students Union employees covered . Non-qualified withdrawals from a Roth 403(b) account are subject to income tax and a 10% penalty on the earnings portion of the withdrawal. A 403 (b) plan is a type of retirement account available to individuals who work in public education and employees of certain 501 (c) (3) tax-exempt organizations. Roth 403b vs. Roth IRA: Key Differences - SmartAsset Securities services and products, including GoalMaker, are offered or made . 4 0 obj % PdfSharp.Pdf.Structure.PdfMarkInformation 403b vs 403b with prudential gia. >> With regard to the 403 (b), I have been contributing to the 403 (b) with Prudential GIA because employer contributions are only made to this plan and not the traditional 403 (b). VGY nao*t8k]u=z1V&s[d[Y&NL5\_P=kf|=r8G"Dpr$3BWSd-@| :I%DYgs`&Ru=3t rqzy;aWzz[ Tara's gets a net return on investment in her 401 (k) that averages 6.50% per year after fees. "Risk Free" assets like CD's and FDIC accounts are losing ground to inflation.. also a risk, Retired life insurance company financial officer who sincerely believes that Its a GREAT day to be alive!, Prudential is usually considered a solid firm. 2 0 obj Prudential Retirement may earn fee revenue in addition to the foregoing compensation if your plan has agreed to pay contract charges, which are sometimes paid in respect of plan and benefit recordkeeping, distribution services and any applicable elective services. The advantages of a 403(b) include faster vesting of funds and the ability to make additional catch-up contributions. Calculated by Time-Weighted Return since 2002. >> 403b1 characteristics vs. 403b7 | Ed Slott and Company, LLC /GS1 50 0 R What's the Difference Between 401(a) and 403 (b) Plans? - Yahoo! We know that managing finances is not easy. Here are some strategies. School districts typically offer 403(b) plans to their . Investor Junkie has advertising relationships with some of the offers listed on this website. Revised Page 08/06/19 Iowa Retirement Investors' Club (RIC) 866 -460 4692 https://das.iowa.gov/RIC RIC 403b At-A-Glance (page 3 of 3) Investments - AXA Equitable, EFS Advisors, GWN Securities, National Life Group, Security Benefit, TCG For the providers listed below, products vary and may include multiple fund offerings within the product shown. A 403(b) plan is a retirement plan for specific employees of public schools, tax-exempt organizations, and certain ministers. /Font Here's a closer look at some of the benefits and drawbacks of a 403(b) plan: The advantages of contributing to a 403(b) account include: Some of the drawbacks to remember when contributing to a 403(b) account are: This type of retirement plan can be the right move for those who work in nonprofits. Helping make finance easy. 403(b) deferred compensation retirement plans. We have a single Fidelity Trad IRA - and also a Fidelity 403b from our teaching days. How can that be?! Trevor Nadar . Learn how these employer-sponsored retirement plans work and if theyre right for you. 403b vs 403b with prudential giaguinness and port drink name. 403b vs 403b with prudential gia Let us be your passport to Laos and much more. /Type /Pages Employer-Sponsored Retirement Plans: 401 (k), 403 (b) & 457. /F0 11 0 R You Might Regret That, There's Still Time to Earn a $2,000 Saver's Credit for 2022 Roth IRA Contributions, Social Security Got Shaken Up in 2023. Contributions to Roth 403(b) plans are made with after-tax dollars and withdrawals in retirement are tax-free, while contributions to traditional 403(b) plans are made with pre-tax dollars and withdrawals in retirement are subject to income tax. Unless you're a teacher or an employee of a tax-exempt organization, you may not be familiar with the 403(b). A 403(b) plan is a type of retirement account available to individuals who work in public education and employees of certain 501(c)(3) tax-exempt organizations. An employee savings plan (ESP) is an employer-sponsored tax-deferred account, funded with contributions and typically used to save for retirement. /Parent 4 0 R /PageLayout /SinglePage The reason being is that only two kinds of organizations that can have a 403b are non-profits. /Type /Pages What is a 403b? 5 0 obj % PdfSharp.Pdf.Structure.PdfStructureTreeRoot The maximum contributions allowed are $20,500 and $22,500 for the 2022 and 2023 tax years respectively. %-------------------------------------------------------------------------------------------------- My tentative plan has been to finish my car loan and several projects then up my ROTH contribution to the max (probably sometime mid to late next year). Accountant's Assistant: Is there anything else the Expert should know before I connect you? 403 (b) Distribution Form MF1005 Published 08/28/2019 02:42 PM | Updated 05/17/2022 09:47 AM Click on the link blue below to access the form you requested. Try that with a 401k/403b and youre hit with a 10% penalty and income tax!! /GS0 7 0 R 403(b) Plan: What It Is, How It Works, 2 Main Types Traditional vs. Roth 401 (k)/403 (b) analyzer | American Funds >> 401 (k) vs 403b plans differ by: Eligibility Investment options Employer expenses Nondiscrimination testing There are various ways you can grow your retirement savings, such as: /StructTreeRoot 5 0 R If you are above 50 years old, you can make a catch up contribution up to $6,500. 8 0 obj % PdfSharp.Pdf.PdfPages /Fm1 100 0 R 403b plans can either be qualified or unqualified plans. >> /P 5 0 R To make the world smarter, happier, and richer. Since 403(b) plan investors dont have low-cost investment options, they also lack the basis of comparison to make the determination that the investment fees they are paying are excessive. The SVAs periodically credit a certain amount of income to retirement plans and the . This video will give you the pros and cons of each option so you can make an educated and informed decision. Of course, you're not required to contribute this much annually if you're unable to. Very helpful. ", Internal Revenue Service. The combination of employee and employer contributions is limited to the lesser of $61,000 in 2022 ($66,000 in 2023) or 100% of the employee's most recent yearly salary. But some plans have wider options. [;|}:veei:+xNo^N_h)n~zr 3BMo>>h/nz2QlAvek|g}L;q;U7\,bKZM$'E^29[@icYE;2X={,::\b;:UU E;T3Em)]6NJKW2)hu^U,|?D+BqFVH`A?r@V^dE`L>ur&71gk 5K#Sz:FH`. You may contribute up to $22,500 yearly to a 403(b) in 2023 ($20,500 in 2022), or $30,000 yearly if you're 50 or older ($27,000 in 2022). I am 68 years old and retired and I rely on my nest egg for my income. endobj Is a Roth 401 (k) or Roth 403 (b) Right for You? Both offer federal income Aug 06, 2017 In the days of pensions, 403(b) participants would contribute to these annuities and get similar fixed-income payments later on in retirement. "XTl(UEd-e3;8\y=3sgsYL>f6K6x^T1mN|t;YZ.JeU=jujMU-_TNl#?V-_JD8y3[,'3zIG %PDF-1.4 However, the types of annuities and mutual funds offered wi ll vary from plan to plan. If your employer offers a 403(b) plan, then you may have a choice between a traditional 403(b) and a Roth 403(b). Simply set up an account using one of the providers listed below. Difference Between 403b and IRA | Difference Between PDF Guaranteed Interest Account - retirement.prudential.com There is a catch, of course. Returns as of 03/04/2023. enter your User ID and PIN and then press Enter. 2021 403b vs, 401k comparison chart. But there are at least two ways you can minimize the damage. The reason 403(b) fees are higher than what they are for 401(k) plans is in the available investment selection. by Dandy Thu Oct 29, 2020 2:39 pm, Post The best way to demonstrate the damage caused by the high fees charged by 403(b) plans is by example. - Within the 403b retirement plan, I chose VBTIX (bond) and VINIX (large blend) - Within the 403b with Prudential GIA (the one I get 6% employer match), I chose the 2060 target-date fund --- Question: I spoke with a representative, according to him, my employer matches 6% of my gross salary. "403(b) and 457(b) Plans. Note that if your employer offers access to both a 401(k) and a 403(b) plan in the same year, the limit applies to your total contributions to both accounts. Thats basically every other employing organization in the country. The plan has average annual fees of 1.50%. Depending upon the type of vesting schedule that 401(k) plans choose, vesting of employer matching contributions can take as long as six years. << By contributing to multiple types of plans, you can benefit from some tax breaks now and receive some income tax-free in retirement. I am 30 yrs old, and a brand new RN starting at 89k per year (plus O/T+night differential=~94/95k). /ViewerPreferences 3 0 R Sam and Tara each earn $75,000 per year and invest 10% of their respective salaries into their employers retirement plans. >> These contracts include "Stable Value Funds" ("SVAs"). She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area. Written by: Brijen Patel. Debt: student loans (35K at a 6% interest rate, and am 1 year into paying them off at $400 monthly- standard plan, so 9 years left) No credit card debt, and my car is paid off. >> Since an IRA is completely self-directed, you will have a choice over what to hold in your account. To make the world smarter, happier, and richer. Both plans enable employees to contribute up to $22,500 per year, or up to $30,000 per year if they are age 50 or older (2023 figures). At the end of his career, Sams 403(b) plan has grown to $1,054,824. Many even offer immediate vesting of those contributions. /ParentTree 6 0 R "Retirement Topics - Exceptions to Tax on Early Distributions. 403b vs 457 comparison chart. Retirement Annuities & Solutions | Prudential Financial Certain 403(b) plans are not required to meet the onerous oversight rules of the Employee Retirement Income Security Act (ERISA). I think But there is one big difference: 403(b) plans have higher investment fees. is misleading since there is so much variation. Read more about 403b vs 401k 2 months ago; Read Time: 3 minutes; by Trevor Nadar; Author; Recent Posts; Follow Me. That is a great question! Yes, but less common. /F2 34 0 R "401(k) Basics. Withdrawals from 403(b) plans have the benefit of being tax-free in retirement. ^uL9h?cv4z#x?db;SyZd,}4u'zl,.7$s 8Ue_a@IL.9nzy4bYseuRxm_}FSf4^kRfm! Roth 403(b) account holders are also required to take annual required minimum distributions (RMDs) at age 72. 457 Plan vs. 403(b): What's the Difference? - Experian I'm concerned about the extremely low yields predicted for bonds, so five weeks ago I moved 80% of my FTBFX to a Prudential Insurance Guaranteed Income Account (GIA) available through my 403 (b). If you invest in a Roth 403(b) and your employer matches your contributions -- with those matched contributions and earnings held in a traditional 403(b) account -- then you are liable for paying income tax on those contributions and earnings in the employer-funded account. Most higher ed employees aren't even aware of this account in their retirement plan. Since 1859, Equitable has helped people build and secure their financial futures. <>stream And remember, 401(k)s serve private-sector employees. Author at Compare Closing LLC . For 2022, he plan also offers $6,500 catch-up contributions for those age 50 and older, increasing to $7,500 for 2023. Done annually, this testingis designed to prevent management-level or highly compensated employees from receiving a disproportionate amount of benefits from a given plan. Comparing retirement plans (specifically a 403b and a TSP) % Creation date: 01/20/2022 15:33:18 The only difference between the two is that one participates in a 403(b) plan and the other in a 401(k) plan. How to Boost Your Savings With a CD Ladder, vesting of employer matching contributions, mutual funds or exchange-traded funds (ETFs), average expense ratio of an ETF is just 0.44%, 403(b) vs. 401(k): A Deep Dive Into Their Similarities & Differences, Retirement Bucket Strategy: What It Is & How It Works, How to Do a Backdoor Roth IRA in 3 Simple Steps, How To Retire at 55: Plan Ahead and Start Saving Now, Best Retirement Planning Tools & Calculators for 2021, Investing for Retirement With Little or No Savings, The Best Strategies for Retirement Distribution, Personal Capitals Retirement Planner Review, The Long-Term Damage Done by High 403(b) Fees. /PageLayout /SinglePage Fichier PDF. Keep reading to learn more about the basics of Roth 403(b)s. A 403(b) is a type of retirement plan that only certain tax-exempt employers can sponsor. Done annually, this testing is designed to prevent management-level or highly compensated employees from receiving a disproportionate amount of benefits from a given plan. v1W\|b\\\KO8v_vot|]|w This means Sams net return on investment in his 403(b) averages 5.50% per year after fees. It is made for employees of tax-exempt institutions and government ministries where the money is deducted from their taxable income towards the saving plan. At the end of her career, Taras 401(k) plan has grown to $1,363,183. Prudential TIAA 2 HOW TIAA RECORDKEEPS YOUR PLAN TIAA provides recordkeeping services for your employer's plan which includes: MOUNT SINAI 403(B) RETIREMENT PLAN WITH PRUDENTIAL GIA - Plan ID 406138 NEW YORK EYE AND EAR INFIRMARY 403(B) PLAN - Plan ID 407362 CONTINUUM HEALTH PARTNERS, INC. 403(B) PLAN - Plan ID 407360 You may also enroll via the Internet or by calling our toll-free . A 403 (b) is an employer-sponsored retirement account for teachers, nonprofits and eligible employees of churches and hospitals. Investopedia requires writers to use primary sources to support their work. Plans may also offer a narrower choice of investments than the other types of retirement plans. Comparing Quotes; The 401k vs 403b Plan: Find The Legal Difference Between. These are separate sources of money to save within your retirement plan account.