403(b) and 401(k)

A 401(k) plan is a qualified plan established by employers to which employees may make salary deferral contribution on a pre/post-tax basis.  Employers may match or contribute into eligible employees 401(k) plans.

The features of a 403(b) plan are very similar to those of a 401(k).  The main difference is that a 403(b) is a retirement plan for certain employees of public schools and tax-exempt organizations.

These retirement plans can be invested in many different investment vehicles designed to promote growth over time.

Information from: http://www.investopedia.com/terms/1/401kplan.asp?layout=orig http://www.investopedia.com/terms/1/403bplan.asp?layout=orig