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Updated about 5 years ago,
How to Choose: 401(a) vs. 403(b)
My new employer has two options for Retirement Plans, both with Fidelity:
401(a):
-Employee after-tax contributions up to 60% of pay*
-Service-based match of 100% to 200% on after-tax contributions up to 3%
-1% annual contribution
403(b)
-Employee pre-tax and Roth (after-tax) deferrals up to 80% of pay (up to the annual IRS limit)
-Catch-up contributions available to employees who are age 50+
I am not well-versed and only have experience in a 403(b) with a previous employer. Any recommendations on how to choose and/or insight on why choose one over the other?