In rare cases, you may have the opportunity to contribute to both plans at the same time. If so, you can choose to contribute more to the one you believe will offer you the better deal. For example, you may prefer a 401(k) if it includes a company match and your 403(b) doesn't. You might prefer a 403(b) if you've been with your company for at least 15 years and want to take advantage of extra catch-up contributions.
Weigh all the key differences listed above to decide which plan is right for you. Remember that your annual contribution limit applies to money you put in both accounts, so if you are contributing to a 401(k) and a 403(b) at the same time, you're allowed only up to $23,000 in combined contributions to both, or $30,500 if you're 50 or older, in 2024. If you run into any questions about your plan, reach out to your plan administrator for more information.
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