A second very popular company retirement plan is a 403(b) plan. If you are a teacher, you probably have a 403(b) plan, and if you work for a not-for-profit organization, you might as well. Basically, 403(b)'s are the 401(k)'s in the non-corporate arena.
A 403(b) plan works very similarly to a 401(k) plan. There are just a few differences that I will highlight here. One is that 403(b) plans often do not have an employer contribution component, and instead, simply provide a vehicle for the individual to save pre-tax money for their retirement. Second, investments in 403(b) plans are limited to mutual funds and annuities. 401(k) plans don't have that restriction. Finally, in addition to the $5,000 additional deferral for those over 50, 403(b) plans also offer long-service deferral amounts for employees. These rules get complicated, and it's important that you talk with your CFP(r) professional about what works best for you.
Be prosperous!
Peggy
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