Investments & Financial Planning

In relation to retirement plans, what is a 403(b) plan?


Section 403(b) retirement plans are defined-contribution retirement plans that offer workers a tax deferred investment and savings program. They are similar to 401(k) plans.
They are commonly used by non-profit institutions such as hospitals, public school systems and charitable organizations.
With a 403(b)retirement plan, money is deducted from your paycheck before taxes and deposited in a custodial account made up of mutual funds, depending on your particular plan. Employers have the option of matching part or all of the contribution.
Answer Provided by: CPAdirectory

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