Offering an employer-sponsored retirement plan can be a great workplace benefit. Nonprofit health care organizations in particular have plan choices that for-profit corporations don’t, namely choosing either the 403(b) or 401(k) plan. Both plans allow employees to avoid current income taxation when contributions are made and to defer tax on accumulated earnings until withdrawn. And in both plans, employers may also make nonelective or matching contributions to employees’ accounts. Continue reading for more indepth definitions on both plans and their differences.
Length: 1 pages (PDF 152 kB)