403(b) — Traditional & Roth
401(k)-like plan for schools and nonprofits (investment options vary)
A 403(b) is a retirement plan similar to a 401(k), commonly offered by public schools and certain nonprofits. It can have Traditional and Roth contribution options.
The core idea (in plain English)
Workplace retirement savings via payroll contributions, with tax benefits similar to a 401(k).
What can be different vs. a 401(k)
- Some plans include annuity products in addition to mutual funds.
- Fees and surrender charges (for certain annuities) can matter a lot.
Common pitfalls
- Not understanding annuity fees/constraints if your plan uses them.
- Overlooking differences between vendors/recordkeepers.
Quick mental checklist
Treat contribution strategy similar to a 401(k), but pay extra attention to investment/annuity fees and plan-specific rules.
Official resources
Educational only. Always confirm eligibility, limits, and plan rules with IRS guidance or plan documents.