What the Difference Between a 401(k) and a 403(b)? - Queer Money Ep. 166
Episode description
Queer Money listeners and Facebook group members have told us several times that their #2 financial concern is saving for retirement. So this week on Queer Money, we are tackling a major question.
Are you throwing away free money? If you’re not taking advantage of the option to invest in a 401(k) or 403(b) at work, that’s EXACTLY what you’re doing. So, how do these employer-sponsored retirement accounts work? How much free money will the organization you work for contribute? And how can participating put you on the road to financial security?
On today’s episode of Queer Money, we’re sharing the ins and outs of the most common employer-sponsored retirement accounts, the 401(k) and 403(b). We explain how employees make contributions to these accounts via a payroll deduction and what types of investments fund administrators put that money toward.
We go on to discuss the similarities between 401(k)s and 403(b)s, weighing in on their like contribution limits, withdrawal fees, and tax-free rollovers. Listen in for insight around what distinguishes the 401(k) from the 403(b) in terms of investment options and learn how participating in your employer-sponsored retirement account can help you achieve financial security!
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