What is a 403 (b) ?

"What is a 403 (b)?" 

I hear that sometimes and thought I would share a couple of basics:

• The 403(b) is a tax sheltered annuity similar to a 401(k)
  
• The 403(b) is a retirement plan for public school employees, 501(c)(3) non-profit organizations and churches
  
• The 403(b) is designed to supplement the Teacher Retirement System pension
  
• The 403(b) enables an employee to contribute pre-tax dollars right from their paycheck

The money you save in a 403(b) grows tax-deferred which means you will not pay taxes on the growth of your money until you retire and even then, for most, the tax rate will be lower after retirement.