Question : How good is a 403(b) retirement plan compared to the others?
I am taking a new position at a non-profit organization. This company is offering a 403(b) retirement plan and I am wondering if I should take it or not. They will pay 75% after 1 year and I can make contributions, before taxes, of up to 10% and I can be fully vested after 3 years of employment . What is the difference between this and a 401K or other retirement programs really?
- asked by taalyn_1
All Answers:
Answer #1
only real difference these days is who offers it. typically a 403b is offered by non-profits,governments, and educational facilities. In somecases they are exactly like a 401k and areprotected by ERISA (federal law) and in othercases they don't have the same level ofprotection. They don't have the same level ofprotection because the offering institution issimply a conduit for the investment house and theindividual rather than the company. Thus they(the offering institution) have no obligation toeducate or ensure that the investment isappropriate....they simply forward the money andall responsibility lies on the individual. Oftentimes these types of arrangements are moreexpensive than others because the mutual fundcompanies have to create educational and salesopportunities with multiple individuals instead offor a company.....
- answered by digdowndeepnseattle
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measure and fulfill your financial needs
