Retirement & Savings

What Is a 403(b) Plan?

A 403(b) plan is a US tax-advantaged retirement savings plan for employees of public schools, certain nonprofit organizations, and some ministers. Like a 401(k), it lets employees contribute part of their pay, often with an employer contribution, with traditional (pre-tax) or Roth options depending on the plan.

403(b) vs. 401(k)

Both share the same annual employee contribution limit. 403(b) plans are offered by nonprofit and public education employers, while 401(k)s are typical at for-profit companies.

Investments

403(b) plans often offer mutual funds and annuities.

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🔗 Related Terms

401(k) Plan 457(b) Plan Contribution Limit Employer Match Roth 401(k) Defined Contribution Plan

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.