Comparison of 403(b) and 401(k) Retirement Plans

This guide provides a detailed comparison of 403(b) and 401(k) retirement plans, specifically for nonprofit organizations and educational institutions. It outlines the eligibility criteria for each plan, noting that 403(b) plans are available to public schools, colleges, universities, churches, and certain tax-exempt charitable entities, while 401(k) plans can be offered by almost any type of organization, including nonprofits. The document explains the similarities between the two plans, such as pre-tax payroll deductions and Roth options, and details the contribution limits for 2026. It also highlights the differences, including investment options, hardship withdrawal policies, and compliance requirements under ERISA. Additionally, the guide discusses the advantages and disadvantages of each plan type, helping employers determine which option may be the best fit for their organization and employees. For further inquiries, contact information is provided.