401(K)/403(B)

 

  401(k)/403(b)

An employer-sponsored investment plan that permits individuals to set aside tax-deferred earnings for retirement or emergency purposes. 401(k) plans are offered by employers that are private corporations. 403(b) plans are offered by employers that are not for profit organizations. 

Some employers will provided their employees with matching funds to the 401k account in addition to the benefits package.  Not only with the funds not be taxed before placing them in the account, but it will also reduce the employees taxable income.

 

 

 

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