The only difference is that 403b is used by the nonprofit companies and organizations, and comes with the benefit of lower administrative costs.

Can anyone here explain the difference between 401k and 403b plan? Am planning to start saving for the retirement and the two plans confuse me a lot!

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Both are almost similar as tax-deferred retirement plans. The only difference is that 403b is used by the nonprofit companies and organizations, and comes with the benefit of lower administrative costs. Ask your employer which plan they're offering. It's not that you have any choice in the matter anyway!


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