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What is the difference between a 401(k), a 403(b) and a Roth IRA?
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A 401(k) is a retirement plan offered by employers to their employees. It is funded with pre-tax money, meaning that you pay taxes on your contributions before they are invested. The money grows tax-free until you withdraw it in retirement.A 403(b) is a retirement plan for public school teachers and other government workers. Contributions are made with after-tax money, but withdrawals are tax-free if used for retirement purposes.Roth IRAs are retirement plans that allow individuals to save up to $6,000 per year (or $7,000 if you’re 50 or older). Withdrawals are not taxed as long as you have held the account for at least five years.