Doing good for others can be hard work. Thankfully, employees of various non-profit organizations such as schools and other tax-exempt organizations can benefit from enrolling in a 403(b) plan, officially known as a tax-deferred annuity.
A 403(b) plan is a type of tax-deferred retirement plan that is similar to the 401(k) plans offered by many employers. Most contributions to a 403(b) plan are tax-deductible. The IRS regulates the operation of 403(b) plans, which must conform to certain contribution and participation rules in order to maintain tax-deferred status.