By Dr. Jim Dahle, WCI Founder

For the most part, you can think of your 403(b) retirement plan as a 401(k). The similarities dramatically outweigh the differences.

Both are retirement plans offered only by an employer. They both offer a $23,000 employee contribution (for those under 50 in 2024) and a $69,000 total contribution (for those under 50 in 2024). They both can be enjoyed in tax-deferred and Roth flavors. The age 55 rule (not the age 59 1/2 rule) applies to both. If you leave the employer, you can access both 401(k) and 403(b) funds after age 55 without penalty. Both plans allow you to select your own investments from among those offered by the plan. They can both be rolled over into another employer retirement plan or an IRA when you separate from the employer. The balance in both of them does not affect the Roth conversion

Keep reading this article on The White Coat Investor.