Section 403[b] Plan Law and Legal Definition

Section 403(b) plan is a retirement plan offered by public schools and certain tax-exempt organizations. An individual’s 403(b) annuity can be obtained only under an employer’s TSA plan. Generally, these annuities are funded by elective deferrals made under salary reduction agreements and nonelective employer contributions. Section 403(b) plan is also known as Tax-Sheltered Annuity (TSA) plan.