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What's the difference between a 401k and a 403b?
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A 401k is a retirement savings plan offered by employers to their employees. It allows workers to contribute pre-tax money from their paychecks, so that they can save for retirement without paying taxes on those contributions until they withdraw them in retirement. A 403b is similar, but it’s available to employees of nonprofits and educational institutions. Contributions are made with after-tax money and withdrawals are taxed at the employee’s income tax rate.