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.
Explore More Terms & Definitions
- Personality tests – psychometric testing
- Myers-Briggs Type Indicator (MBTI)
- Competency Modeling
- Recruitment Process Outsourcing (RPO)
- Candidate Journey
- Executive Compensation
- Nontraditional Employment
- Job Hopper
- Job Offer Letter
- Knockout Question
- HR Analytics and Data-Driven Recruiting
- Agent (Insurance)
- Mock Interview
The Role of Artificial Intelligence (AI) in Recruitment
Accounting and Finance Recruiting: How to Recruit Accounting and Finance Professionals
The Anatomy of a Perfect Career Site
What Are the Risks of a Delayed Recruitment Process?