<title>Learn about 401(k) and 403(b) accounts</title>
<category fLocale="cdn">investing</category>
<klink type="cncpt">Tell me about 401(k) and 403(b) accounts</klink>
</index>
<content>
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<p><glossary tNum="286928">Section 401(k)</glossary> and <glossary tNum="286929">Section 403(b)</glossary> plans are employer-sponsored retirement savings plans. Section 403(b) plans are available only to employees of schools and other nonprofit organizations and have more liberal contribution limits. Both plans offer tax advantages to encourage you to save for retirement by contributing pretax money through payroll deductions, with your employer generally matching a portion of your contribution. Because these plans are meant for retirement, you may incur additional taxes and penalties if you withdraw from them before retirement (although you may qualify for certain exceptions). </p>
<p>You can begin participating when you meet your company's eligibility requirements and entry dates. See your benefits/human resources department for the eligibility requirements for your plan and the maximum amounts you can contribute.</p>
