403(b)
The 401(k)'s twin for teachers, nurses, nonprofit and government workers. Same idea: pre-tax paycheck contributions, tax-deferred growth, often with an employer match.
By Findley's Finance · Last reviewed: September 2026
Why it matters
If you work for a school, hospital, or nonprofit, the 403(b) is your workplace retirement plan and it works like a 401(k) in nearly every way that matters — same tax treatment, same contribution mechanics, same early-withdrawal penalties. The same rules apply: contribute enough to capture the full employer match first, then consider an IRA before adding more here.