The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: 403b vs. 401k Date:  3/18/1998  8:29 AM
Author:  TMFPixy Number:  2241 of 78674


<<Can someone explain the difference between these two, or point me to where I can find out. >>

401(k) Plan. Also known as a cash or deferred arrangement (CODA) plan, a 401(k) is a qualified defined contribution plan that takes its name from the section of the Internal Revenue Code which prescribes the rules under which it operates. It is a retirement plan in which the employer permits an employee to elect to receive part of his or her compensation in cash or to defer im