What is the difference between a 403b and a 401k?

Answer by  mannersandsuch (1796)

Both of these are named for the line in the tax code that initiated them. 403b is a different type of saving account appears later in the law code.

Answer by  Craig61 (358)

Both of these programs are employer sponsored retirement programs. 403b's are for public employees in a pension program. 401k's are the primary program for most other employees to save for their retirement.

Answer by  blahblah (670)

The main difference is that 403(b) plans can only be offered by certain types of employers, generally nonprofit and nonpolitical educational, religious, scientific, and charitable institutions. Employers themselves administer 401(k) plans; 403(b) plans are generally administered by other organizations. Because employers administer 401(e) plans, they often require employees to take their money out of the plan when they leave employment.