GLOSSARY

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401(k) - A retirement account to which an eligible employee can contribute a certain amount of his or her pretax salary; earnings are tax-deferred. Some employers may match a stated percentage of employee 401(k) contributions. The reduced cost and liability of 401(k) plans appeal to employers.

 

403(b) - A qualified retirement plan similar to the 401(k), available to employees of nonprofit and government organizations.

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