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A 457(b) is similar to a 401(k) in how it allows workers to put away money into a special retirement account that provides tax advantages, letting you grow your savings tax-deferred.
A 401(k) plan is a tax-advantaged retirement savings tool offered by employers that allows eligible employees to contribute a portion of their salary up to a set amount each year.
457 plan. The 457 plan is a type of nonqualified, [1] [2] tax advantaged deferred-compensation retirement plan that is available for governmental and certain nongovernmental employers in the United States. The employer provides the plan and the employee defers compensation into it on a pre tax or after-tax (Roth) basis.
A 401(k) plan is a retirement savings account sponsored by an employer. The 401(k) gets its name from the section of the tax code that regulates them.
Both the 403 (b) and 401 (k) are among the best retirement plans available, and one key difference between them is relatively simple: the group of workers that is allowed to use them....
Fortunately, it only takes a little planning to avoid the worst 401(k) mistakes. Here are the biggest mistakes you can make with your 401(k) and how to avoid them.
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