Question

Which of the following is generally true about 401(k) and 403(b) retirement plans? plz help


A

They are plans offered through employers.

B

They offer some tax benefits.

C

They restrict when you can withdraw your money.

D

All of the above

Answer 1

Answer is D: All the above

401(k) plan is given by the employer in which the employee fixes up the % of the salary to be invested for the retirement plan and employer put some amount to it and gives back at the time of retirement. These plans are like you cannot withdraw money in between as they have a locking period.

403(b) plan is generally an income tax saving plan.