What is a 403(b) Plan and How do You Use it?

You’ve almost surely heard of a 401(k) plan, but what in the world is a 403(b) plan? Simply, a 403(b) plan is a tax-advantaged retirement account for employees of schools, churches, and nonprofits.

A 403(b) plan (aka tax-sheltered annuity, TSA) is similar to a 401(k) plan, but it has a couple of important differences.

403(b) Plans

Here’s how they work: if your employer is a public school, including a state university, a non-profit, or a church, your organization may have a 403(b) you can use to…