403(b) Plan Definition: What is a 403(b) Plan?

What is a 403(b) plan? Almost every 403(b) plan definition will make comparisons to the traditional 401(k) retirement plan.

How Does a 403(b) Plan Differ From a 401(k) Plan?

A 403(b) plan is available to certain public-sector employees and tax-exempt organizations. It works in a similar fashion to a 401(k) plan.