--- title: What Is the Difference Between a 401(k) and a 403(b) Plan? description: Both 401ks and 403(b)s are types of defined contribution plans, a group that also includes 457 and TSPs (Thrift Savings Plans). authors: - name: timestaff url: https://money.com/author/timestaff/ articles: 459 covers: - Retirement - Banking - Career Advice - Credit - Credit Cards - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes former_staff: true published: '2014-05-21T17:55:06.000Z' modified: '2024-04-14T08:49:58.000Z' section: Retirement tags: - 401(k) - 401(k)s - '403' - 403b - 457s - contributions - Retirement - retirement accounts - retirement investments - retirement planning - retirement savings - saving for retirement - tax benefits - Taxes - thrift savings plan - tsp canonical: https://money.com/collection-post/difference-between-401k-and-403b-plan/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![What Is the Difference Between a 401(k) and a 403(b) Plan?](https://money.com/img/logo-social.png) Both [401(k)s](https://money.com/what-is-a-401k-rollover/) and 403(b)s are types of defined contribution plans, a group that also includes 457 and TSPs (Thrift Savings Plans). All offer similar [tax benefits](https://money.com/topic/tax-guide/); the major difference is in who can use them. Here's how they break down: - *[401(k)s](https://money.com/collection-post/why-401ks-are-a-good-deal/) are the version that corporations offer to their employees*. ([Roth 401(k)s](https://money.com/collection-post/whats-a-roth-401k/ "Roth 401k") are a subgroup that has different tax treatment.) - *403(b)s are for employees of public education entities and most other nonprofit organizations*. For the most part, they work the same as 401(k)s. - *457s are for state and municipal employees, as well as employees of some qualified nonprofits*. A 457 also works much like a 401(k), but there are differences in contribution limits and the treatment of early withdrawals. If your employer also offers a 401(k) or 403(b) plan, you can contribute to both the 457 and the other plan for a whopping $35,000 in total or, if you're 50 or older, $46,000 in total. Also, unlike with 401(k)s and 403(b)s, you can withdraw the funds before age 59 ½ penalty-free (you’ll still own income tax on all withdrawals). - *Thrift Savings Plans (TSPs) are for federal employees, including members of the uniformed services.* The contribution levels and tax treatment of TSPs is the same as 401ks and 403bs, though TSPs are much less likely to offer [matching contributions](https://money.com/collection-post/whats-a-matching-contribution/ "matching contributions"). ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/collection-post/difference-between-401k-and-403b-plan/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "401(k)", "item": "https://money.com/401k/" }, { "@type": "ListItem", "position": 4, "name": "What Is the Difference Between a 401(k) and a 403(b) Plan?" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/collection-post/difference-between-401k-and-403b-plan/#webpage", "url": "https://money.com/collection-post/difference-between-401k-and-403b-plan/", "name": "What Is the Difference Between a 401(k) and a 403(b) Plan?", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2014-05-21T17:55:06.000Z", "mainEntity": { "@id": "https://money.com/collection-post/difference-between-401k-and-403b-plan/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/collection-post/difference-between-401k-and-403b-plan/#breadcrumb" }, "dateModified": "2024-04-14T08:49:58.000Z" }, { "@type": "Article", "headline": "What Is the Difference Between a 401(k) and a 403(b) Plan?", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://money.com/img/logo-social.png", "width": 300, "height": 300 } ], "author": [ { "@type": "Person", "name": "timestaff", "url": "https://money.com/author/timestaff/", "@id": "https://money.com/author/timestaff/#author" } ], "publisher": "https://money.com/#organization", "datePublished": "2014-05-21T17:55:06.000Z", "description": "Both 401ks and 403(b)s are types of defined contribution plans, a group that also includes 457 and TSPs (Thrift Savings Plans).", "abstract": "Both 401ks and 403(b)s are types of defined contribution plans, a group that also includes 457 and TSPs (Thrift Savings Plans).", "@id": "https://money.com/collection-post/difference-between-401k-and-403b-plan/", "inLanguage": "en-US", "dateModified": "2024-04-14T08:49:58.000Z", "keywords": [ "401(k)", "401(k)s", "403", "403b", "457s", "contributions", "Retirement", "retirement accounts", "retirement investments", "retirement planning", "retirement savings", "saving for retirement", "tax benefits", "Taxes", "thrift savings plan", "tsp" ], "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "401(k)", "sameAs": [ "https://en.wikipedia.org/wiki/401(k)" ] } ] } ] } ```