403(b) Plan
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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." |
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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 |
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I work for a university, and I have a 403(b) with TIAA-CREF. But TIAA-CREF says I cannot transfer money to another provider. Can they prevent me from transferring my money to a better investment?
It depends. The IRS does permit the transfer of assets between 403(b) providers; however, employers and 403(b) providers are not required to allow such transfers. Generally, the transfer is permitted ... -
Is my 403(b) account owned by me or by the institution?
You are the owner of your 403(b). The financial institution just holds the assets on your behalf and facilitates your transactions.For the assets they hold on your behalf, financial institutions ... -
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