403(b) Plan
A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations and certain ministers. 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 or
- A retirement income account set up for church employees.
Generally, retirement income accounts can invest in either annuities or mutual funds. Investopedia Says:
The features of the 403(b) plan are very similar to the 401(k) plan. Employees may make salary deferral contributions that are usually limited by regulatory caps. Related Terms:
401(k) Plan
457 Plan
Custodial Account
Pension Plan
Qualified Joint And Survivor Annuity - QJSA
Tax-Sheltered Annuity
TIAA-CREF
Voluntary Employees Beneficiary Association Plan - VEBA |