403(b) Plan
Barron's Banking Dictionary:
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403(B) Plan
Tax-deferred savings plan for employees of public employers and employees of not-for-profit organizations. A 403(b) plan is similar to a 401(k) salary reduction plan and allows voluntary contributions through payroll deduction.
Assets of a 403(b) plan may be invested in insurance company contracts or mutual funds. Funds may not be withdrawn before age 591⁄2 or termination of employment without tax penalty, except for certain hardship situations.
Investopedia Financial Dictionary:
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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:
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
Related Links:
Start the year off right by evaluating your financial health and setting new goals. Financial New Year's Resolutions You Can Keep
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. 403(b) Plan Tutorial
Roth accounts tend to beat Traditional plans over the long term by providing tax savings. Roth Feature Boosts Benefits For 401(k) And 403(b) Plans
Find out how the 403(b) plan helps employees of nonprofit entities meet their retirement goals. Top 9 Benefits Of A 403(b) Plan
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. Introductory Tour through Retirement Plans
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Hardship
(insurance term)
Section 403 (B) Plan
(insurance term)
Required Minimum Distribution (RMD)
(insurance term)