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What is the difference between a 401K, a 403B, and a 457?
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The main difference between a 401k, a 403b, and a 457 plan is in how they are taxed. A 401k and a 403b are both retirement plans that allow you to save for retirement on pre-tax income. These plans are typically offered by employers and have different contribution limits depending on your salary. A 457 plan is a type of tax-advantaged deferred compensation plan available to certain public sector employees. This plan allows participants to defer taxes until withdrawal and has no contribution limit.