DEFINITION of '403(b) Plan'
A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers.
Generally, retirement income accounts can invest in either annuities or mutual funds.
Also known as a "tax-sheltered annuity (TSA) plan."
INVESTOPEDIA EXPLAINS '403(b) Plan'
The features of a 403(b) plan are very similar to those of a 401(k) plan. Employees may make salary deferral contributions that are usually limited by regulatory caps. Individual accounts in a 403(b) plan can be any of the following types:
- An annuity contract, which is provided through an insurance company
- A custodial account, which is invested in mutual funds
- A retirement income account set up for church employees
Also known as EACAs, these were created as part of the Pension ...
Also known as QACAs, these were established under the Pension ...
A nonprofit organization that provides investment and insurance ...
A tax-free post-retirement medical expense account used by retirees ...
A qualified plan established by employers to which eligible employees ...
A non-qualified, deferred compensation plan established by state ...