A retirement plan similar to a 401(k) plan, but one which is offered by non-profit organizations, such as universities and some charitable organizations, rather than corporations. There are several advantages to 403(b) plans: contributions lower Taxable income, larger contributions can be made to the Account, earnings can grow tax-deferred, and some plans allow Loan. Contributions can grow Tax-deferred until Withdrawal at which time the Money is taxed as Ordinary income (which is sometimes a disadvantage).
