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403(b) Plan: What Is It And How Does It Work

Credit: ProsAndCons.com

From TheBalance.com…..

A 403(b) plan is a tax-sheltered annuity (TSA) plan offered to employees of tax-exempt organizations such as nonprofits, churches, hospitals, and public education institutions. Employers might offer these retirement savings plans as part of an employee’s benefits package, and they can actually benefit both parties.

A 403(b) plan offers two ways to invest the funds within the account.

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