Quick Definition

A 403(b) plan is a tax-advantaged retirement savings plan available for public education organizations, some non-profit employers, and self-employed ministers.

Examples

• 1A teacher in a public school contributing a portion of her salary to a 403(b) plan to save for retirement.
• 2A non-profit employee electing to invest in mutual funds through his employer's 403(b) plan.
• 3A minister setting aside funds in a 403(b) plan, which he plans to use after retirement for living expenses.

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