A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities.

It's similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts.

The deferred salary is generally not subject to federal or state income tax until it's distributed.