Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

403b Plan

A 403(b) plan, which is also known as a tax-sheltered annuity plan or TSA, is a type of retirement plan used by those who work in tax-exempt businesses, including schools and universities. This type of plan works like a 401(k) plan in that money for retirement is saved before income tax is due and cannot be withdrawn until retirement age is reached. Deposit limits similar to what works with a 401(k) plan are used as well. There is no taxation until it is withdrawn.


Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.