Define: 403(b) Retirement Plan
A 403(b) is very similar to a 401(k). The most noticeable difference to the ordinary person is that the 403(b) is offered to employees of public education institutions, nonprofits that qualify for 501(c)3 status, and self employed ministers. Other than that, the same equation applies: 1 letter + 3 numbers = a much nicer retirement. For a full explanation of this equation, browse through what a 401(k) is and its benefits.
Contributions to a 403(b) plan are made from pre-tax earnings and left to grow free of tax until this money is withdrawn, in what is called tax deferral. When distributed, this money is then taxed as income, at your current income level.
Learn more on our chart of various retirement plans.