Beyond a 401(k)--Understanding a 403(b), 457, and 401(a)
Money Girl
Macmillan Holdings, LLC
4.6 • 1.8K Ratings
🗓️ 8 May 2026
⏱️ 17 minutes
🧾️ Download transcript
Summary
1018. Do you have multiple retirement plans and are unsure how they fit together? Laura answers a listener’s question about having a 403(b) and a 457 plan at work, and a potential second job with a 401(a). Knowing the rules of various retirement plans helps you take full advantage of them and avoid potential mistakes and penalties.
Key takeaways
- The names of workplace retirement plans come from the sections of the Internal Revenue Code that govern them.
- Plans from different sections of the tax code operate independently, allowing you to double or triple-dip maximum contributions.
- Plans from the same section of the tax code, such as a 401(k) and a 403(b), are subject to one shared annual contribution limit.
- A 403(b) can be offered by public schools, hospitals, and non-profits; it allows an extra catch-up contribution for long-term employees.
- A 457 plan has different types of accounts, but the governmental 457(b) is the most common. It allows an extra catch-up contribution and no early withdrawal penalties.
- A 401(a) is typically offered by government agencies, schools, and non-profits. It usually has mandatory participation and a high annual contribution limit.
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Transcript
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| 0:00.0 | Most people have heard of a 401K, which is a terrific retirement benefit offered by many companies. |
| 0:12.0 | But in some cases, you may have the opportunity to enroll in other types of workplace retirement plans or even use a combination of them. |
| 0:19.9 | That's what a listener named Smith recently asked me |
| 0:23.7 | about. He says, my employer offers both a 403B and a 457 plan, and I contribute to both. I'm considering |
| 0:34.5 | taking on a part-time position with another employer that offers a 401A and a 457 plan. |
| 0:43.6 | The new 401A would have a mandatory contribution, but what happens if I've already maxed out my 403B for the year? |
| 0:53.7 | Would I be allowed to contribute to all of these plans, |
| 0:57.5 | or are there any restrictions on contributions? |
| 1:01.3 | Thanks so much for your question, Smith. |
| 1:03.3 | It sounds like you have some terrific opportunities to invest for retirement, but it is essential |
| 1:08.3 | to understand the rules of these different retirement plans so you can |
| 1:12.7 | avoid any potential mistakes and penalties. |
| 1:15.7 | Whether you have access to multiple workplace accounts or you just want to get familiar with the |
| 1:20.8 | range of options offered by various organizations, that's what I'm going to do today in this |
| 1:26.3 | show. |
| 1:26.7 | I'm going to give you a primer on all those |
| 1:28.8 | retirement plans in this podcast. Hey, everyone, welcome back. It's episode 1,018 of Money Girl. |
| 1:36.8 | This is Finance Friday. It's the show where I answer your burning money questions. I'm Laura |
| 1:42.3 | Adams, an award-winning author, spokesperson, and money speaker. |
| 1:46.3 | And in the show notes, you can find links to everything that I mention and learn more about me |
| 1:51.1 | and how to reach out. You've probably noticed that the names of all these workplace retirement |
| 1:56.5 | plans are just an alphabet soup. And that's because they come from sections of the Internal Revenue |
... |
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