Glossary of Terms beginning with 4

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401(K): An employer sponsored retirement plan for either for profit and not-for-profit (tax exempt) organizations.
•    There are a wide variety of funds to select from and the employer will select one fund in which the employee has choices for contribution distributions based on risk tolerance.
•    Pre-tax dollars invested (all withdrawals are taxed) which reduces your taxable income.
•    Frequently includes a company match at a predetermined ratio.
•    There are annual contribution limits.
A 403(b) is a similar plan but for not-for-profits only.
Contact www.401khelpcenter.com for more info.
403(b): A not-for-profit organizations employer sponsored retirement.
•    There are a wide variety of funds to select from and the employer will select one fund in which the employee has choices for contribution distributions based on risk tolerance.
•    Pre-tax dollars invested (all withdrawals are taxed).
•    Frequently includes a company match at a predetermined ratio.
•    There are annual contribution limits.
Contact www.403bwise.com for more info.