[Traditional IRA vs. Roth IRA]
[Mutual Funds vs. Differed Amenities]
What are the differences between
401(k) and 403(b) plans?
401(k)
Many companies (in fact most these days) offer 401(k) plans which allow an employee to make pre-tax contributions to their retirement plan. The employee can contribute the lesser of 15% or $10,000 of their salary to the 401(k). Most companies offer a variety of choices on the investment curve for their employees, often ranging from money market funds to bond funds to growth stock funds to international funds. Some employers also will offer to "match" an employee's contribution to the plan.
403(b)
If you are an employee of a non-profit organization, school, college, university or hospital, 403(b) investing is one of the best ways to set up your retirement plan. A 403(b) plan permits you to authorize your employer to make pre-tax, salary-deferred contributions to your account. Your employer makes the contribution to your account, allowing the earnings to accumulate tax-deferred. An employee may contribute up to the lesser of 20% of their salary or $10,000. And, in some special situations, you can even contribute more than $10,000.
You should contact Tom Butenhoff, Ken Schimpf Jr., Ken Schimpf III, or Garrett Butenhoff at 1-800-747-5477, or in Milwaukee at 414-225-3555, to learn more about these exciting investment opportunities.
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