How is a 403(b) different from a 401(k)?

A 403(b) is the public-sector and nonprofit cousin of the 401(k), offered by schools, hospitals, churches, and charities. The core mechanics are nearly identical: the same 2025 employee deferral limit of $23,500, the same $7,500 catch-up at 50+, pre-tax and Roth options, and employer matching where available. The differences are mostly historical. 403(b) plans traditionally leaned heavily on annuity products and sometimes carry higher fees, so scrutinize the investment menu and expense ratios carefully. Some 403(b)s also offer a special service-based catch-up for employees with 15+ years at the same organization, which 401(k)s don't have. If you're a teacher or nonprofit worker, treat your 403(b) like a 401(k) but watch fees closely. Check what you're paying with a look at your plan's fund expense ratios.