401k vs 403b - What's the difference between a 401k and 403b?

Рет қаралды 15,951

Күн бұрын

What's the difference between a 401k and 403b? Is a 401k better than a 403b? We'll take a look at the similarities and differences between the 403b and 401k retirement plans in this video to give you a better understanding of how the two most common workplace retirement plans match up!
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A bit about my credentials...I have a B.S. degree in Finance, I've spent my entire career working in various corporate finance roles, and have been an active stock market investor for over 20 years. While all of this means I know what I'm talking about (most of the time!), it does not mean you should act solely on my word alone.
I am not intending to, nor licensed to give personalized financial advice. I'm merely trying to share my knowledge and experience so that you are able to make better financial and investment decisions for yourself based on your own research!
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• 401k vs 403b - What's ...

Пікірлер: 40

@JayFairbrother 3 жыл бұрын

What do you think of the new intro music. Pretty good, right?!

@charlesjohnson7506 3 жыл бұрын

Bruh.

@joerosa8618 3 жыл бұрын

😳

@StephenFI 3 жыл бұрын

Easy to understand, thanks Jay.

@BrittanyVelazquezbriialiii 2 жыл бұрын

This video contained a lot of information to help me understand my job's new retirement plan and helped me to make an enrollment decision. Thank you for making the content easy to follow and for sharing your knowledge!

@JayFairbrother 2 жыл бұрын

Thanks for the kind words! Glad you found it useful!

@TradingWithCJ 3 жыл бұрын

Nice breakdown mate!! Seems like a no brainer!

@MaxTalks 3 жыл бұрын

5 minute friday is back!!!! the intro music was funny too, should release an album ;)

@JayFairbrother 3 жыл бұрын

Gonna turn this into a music channel soon!

@aliciadion4054 3 жыл бұрын

I didn't know about the $3000 catch-up on 403bs! Good ending too, it's great to understand the differences, but it's not going to change your options.

@angiebutcher4068 6 ай бұрын

Thank you for this video. My husband is 62 and has a 403b. We are in a situation where we are withdrawing it in one lump sum. The form we printed out is a little confusing and is there truly a 20% tax on it?

@aliciadion4054 3 жыл бұрын

The intro! Yess! 😂

@JayFairbrother 3 жыл бұрын

Just one of my many talents 😂

@AnastasiInTech 3 жыл бұрын

Interesting! For me there is no difference .... both sounds great and unavailable... We can put about 2% untaxed to pension :(

@Gayhan- Жыл бұрын

What?

@Krthaspecialist 2 жыл бұрын

The university I work for uses tiaa investments, your opinion on this option?

@JayFairbrother 2 жыл бұрын

I don't have any experience with TIAA so I can't really give an honest opinion about them

@ReassuringSmile 2 жыл бұрын

Is there a benefit for deferring the tax later as opposed to taxed beforehand?

@JayFairbrother 2 жыл бұрын

Depending on how much you make your tax rate today could be much higher than what it will be in retirement. So by using a tax deferred account you not only get out of paying taxes on the money today, but you hopefully end up paying a lower tax rate on that same money in retirement.

@PlanYourOneLife 3 жыл бұрын

Lmao at the intro music....😅

@JayFairbrother 3 жыл бұрын

I think I missed my calling in life 🤪

@PlanYourOneLife 3 жыл бұрын

@@JayFairbrother Lol.. Hey I’m from the FB “group.” Hopefully we can support one another.

@editbeli7780 Жыл бұрын

My employer actually offers both options a 403 b ( with choice of 4 companies Fidelity, Metlife, AIG, TIAA and a 401 k…. I am trying to choose. Any suggestions?

@JayFairbrother Жыл бұрын

You could technically contribute to both if you wanted. I'd make my decision based on which plan has the best investment options, employer match and vesting schedule if there are major differences between the plans

@lkniel 8 ай бұрын

My job also offers both, so thank you for responding to this question, very helpful! 👍

@wildfirekunal Жыл бұрын

1. What about Roth 401k and Roth 403b? Is there a difference there aside from the fact that you pay taxes now? 2. My university offers both and investments are similar. There is a combined annual cap for 401k and 403b, even I chose to put money in both, I cannot exceed over the annual limit. In that case, what would you do? Thanks for the video

@JayFairbrother Жыл бұрын

Difference with the Roth is you pay taxes now, and not again in retirement. So depending on your tax situation today vs what you think it will be when you retire, a Roth may be a better option. If you're offered both a 401k and 403b and they offer the same investments in each, it probably doesn't make a difference which to choose. Otherwise I'd just pick the one I thought had the better investment choices

@azwaroy6098 2 жыл бұрын

like 401k we can max out, are we allowed to do with 403(b)?

@JayFairbrother 2 жыл бұрын

403b has the same contribution limits as the 401k. So $20,500 for 2022

@TheAndrewLopezFinancePodcast 3 жыл бұрын

But which is better to yolo on Doge with 20x leverage?

@JayFairbrother 3 жыл бұрын

D. All of the Above

@JasonBuckman 2 жыл бұрын

RMD age is 72, not 70½.

@JenniferSohan1 Жыл бұрын

can we borrow from a 401K and how would that work??

@JayFairbrother Жыл бұрын

You can take loans from your 401k, but I’d highly advise against it unless there’s really no other options

@FG-gr2cz 5 ай бұрын

The clock should start when you start talking not a minute in to it. you didn't finish one minute early u finished on time since the video is exactly 5 min :)

@JayFairbrother 5 ай бұрын

Sorry, that’s not what the rule book states!