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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 http://www.fool.com/retirement for all the great details on that and other plans.

Regards…..Pixy
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