403 (b)/TSA

A retirement plan for certain employees of public schools, tax-exempt organizations, and certain ministers.

Generally, retirement income accounts can invest in either annuities or mutual funds.

Also known as a "tax-sheltered annuity (TSA) plan."

The features of a 403(b) plan are very similar to those of a 401(k) plan. Employees may make salary deferral contributions that are usually limited by regulatory caps. Individual accounts in a 403(b) plan can be any of the following types:

• An annuity contract, which is provided through an insurance company
• A custodial account, which is invested in mutual funds
• A retirement income account set up for church employees