403(b) Plan

Filed Under » , , , , ,
Dictionary Says

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 Says

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

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. 401(k) Plan

    A qualified plan ...

  2. 457 Plan

    A non-qualified, ...

  3. Custodial Account

    1. An account ...

  4. Golden Boot

    An inducement or ...

  5. Qualified Joint And Survivor Annuity ...

    An annuity ...

  6. Tax-Sheltered Annuity

    A type of ...

  7. TIAA-CREF

    A nonprofit ...

  8. Voluntary Employees Beneficiary ...

    A tax-free ...

  9. Qualified Automatic Contribution ...

    Also known as ...

  10. Eligible Automatic Contribution ...

    Also known as ...

Articles Of Interest

  1. Financial New Year's Resolutions You Can Keep

    Start the year off right by evaluating your financial health and setting new goals.

  2. 403(b) Plan Tutorial

    Learn about the set-up, the contributions to and the distributions from this retirement plan for certain employees of public schools and tax-exempt organizations.

  3. Roth Feature Boosts Benefits For 401(k) And 403(b) Plans

    Roth accounts tend to beat Traditional plans over the long term by providing tax savings.

  4. Top 9 Benefits Of A 403(b) Plan

    Find out how the 403(b) plan helps employees of nonprofit entities meet their retirement goals.

  5. Introductory Tour through Retirement Plans

    Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it.

  6. I have a 403(b). Can I switch it to a different provider?

  7. Is my 403(b) account owned by me or by the institution?

  8. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.

  9. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.

  10. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center