No. of Recommendations: 0
Dan wrote:

I am no expert, but I will tryo to answer to you what I think I know.
Basically, the difference between 401k and 403b is 401k is for corporations and 403b is for non-profit organizations like churches, schools, etc.
Most 403b plans that I have heard about from clients is that they offer several investment options similar to a 401k. I imagine different school districts or different states may adopt different options. As far as I know they will not allow for self-direction as I believe 401k plans do not either.

Well, as I said earlier, the 403b can only invest in mutual funds and/or annuities. The 401k can have a self-directed option within which you may trade in individual securities. Read my Foolish Retirement Plan Primer available at for all the great details on that and other plans.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.