What’s the difference between a 401k, 401a, and 403b?

People often get confused in the “400” space considering the fact that there are a few options, 401k, 401(a), and 403(b). Ultimately, they all work almost the same way, and all have the same IRS contribution. In 403b’s, we don’t usually see money matching as much as we see in the other account types. However, they all share the same purpose, to help people save for retirement by allowing them to save their own money, with a possible match from their employer. 401k’s are usually used by companies, and 403b’s are usually seen in non-profit organizations. Moreover, 401a’s are typically seen at non-profit organizations and government entities. The different names represent how the documents are written in the back end, but for employees saving for retirement, all of these different accounts have the same goal.

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Casey Smith
President, Wiser Wealth Management

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By Published On: May 5, 2023

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