401(k), 403(b), 401(a), and 457

Congress added section 401(k)to the Internal Revenue Code in 1978. A 401(k) allows a worker to save for retirement while deferring income taxes on earnings until withdrawal. Other tax deferred retirement plans include the 403(b) for workers in educational institutions, churches, public hospitals and non-profit organizations, and the 401(a) and 457 plans, for employees of state and local governments.
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