tax deferral Guides

403 (b) : Saving For Retirement

The 403 (b) plan is a tax-advantaged vehicle in the United States available to public education organizations, some non-profit employers, cooperative hospital service organizations, and self employed ministers. This plan is very similar to a 401(k) plan in which a pre taxed amount is accumulated and the tax on it is deferred till the time of withdrawal. After 2006 contributions from Roth IRA are also allowed into a 403(b) plan in which case, the withdrawals are tax-free if some requirements are met.