Culture & People
403(b) plan is a type of a retirement plan that employer offer to their employees as one of the benefits.
Definition of 403(b) plan
403 (b) plan is a type of retirement plan similar to a 401(k) plan. The difference is that with 403(b) retirement plans are specific to employees of tax exempt organizations such as educational organizations, hospitals and other non-for profit organizations.
403(b) plans can either consists of an annuity plan or mutual funds. These mutual funds, if chosen, can be invested for the purpose of making income for the retirement.
Benefits of 403(b) plans
Similarly to 401(k), 403(b) retirement plans are an important value to employees. They are a part of non-for-profit companies' Employee Value Proposition with which they can attract new employees and retain existing.