403(b) and 457 are two distinct kinds of retirement savings plans which are qualified for tax advantages in the United States. These advantages are available to different employers who provide the plan to their employees. 403(b) is a retirement savings strategy, which is a tax advantage and made available for cooperative hospital service organizations, self-employed ministers, and some particular non -profit employers.
The 457 plan is a retirement investment plan which is tax-advantaged. 403b is a retirement savings plan which is tax-advantaged and made available for many different organizations and non-profit employers. Non- profit employers include specifically those organizations which are IRS code 501(c) (3) organizations.
The 457-retirement savings plan is also tax-advantaged and made available for governmental and some specific, non- governmental employers who provide the program to their employers. In a 457-retirement plan, contractors can participate in a 403(b), and the independent contractors cannot participate.
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