Conservative wealth management planner Chester “C. Edziu” Pacana works at DeRosa & Associates Inc. in Jamestown, Tennessee. Alongside this role, he serves as the president and a managing member of Edge Interstate Investments LLLP. Chester Pacana has been working in the finance industry for upwards of 15 years and is familiar with such things as 401(k) and 403(b) plans. Most people have heard of 401(k) plans when it comes to saving for retirement. However, certain people will only have the option of setting up a 403(b) plan when they get their first job. Despite having different names, these plans are very similar to one another. Each offers tax-deferment options when contributions are made and allows employers to match employee contributions each year. Further, both limit withdrawals from participants younger than 59.5 years old, can be rolled over either from another job or into an IRA, and require that participants start getting monthly payments at age 70. Despite these similarities, 401(k) and 403(b) plans are still quite different from one another; whereas virtually any company in any field can offer 401(k) plans to its employees, 403(b) plans can only be offered to specific employees, such as government employees and teachers, working in the public sector. Moreover, most 403(b) plans are more limited in terms of investment options for participants. While a 401(k) plan enables participants to invest in stocks, bond funds, annuities, and other investment vehicles, 403(b) participants can often only invest in annuities or mutual funds.
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AuthorChester Pacana - Experienced Conservative Wealth Management Planner. Archives
July 2019
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