401(k) Plan
An employer-sponsored retirement-savings plan funded by employees with contributions that are deducted from pre-tax pay. Employers frequently add matching contributions up to a set limit. Employees are responsible for managing the money themselves, allocating the funds among a selection of stock, bond and cash investment funds. Investment gains are not taxed until the money is withdrawn.

403(b) Plan
A retirement-savings plan for employees of colleges, hospitals, school districts and nonprofit organizations. The plan, which is similar to the 401(k) plan offered to many corporate employees, is funded by employees with contributions that are deducted from pretax pay. Employees manage the money themselves, selected from fixed and variable annuities, and mutual funds. Investment gains are not taxed until the money is withdrawn.