Definition 1.
A 403(b) plan is, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers. Individual accounts in a 403(b) plan can be any of the following types:-An annuity contract, which is a contract provided through an insurance company,-A custodial account, which is an account invested in mutual funds, or -A retirement income account set up for church employees. Generally, retirement income accounts can invest in either annuities or mutual funds.
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