403b plan

A 403(b) plan is a retirement plan offered by public schools and certain charitable organizations. This type of plan is similar to a 401(k), but it allows you to use money provided by your employer and any investment earnings on that money before you retire. 

Public-school employees are allowed to make pre-tax contributions into the retirement 403b plan. The amounts they can contribute increase each year based on inflation, as determined by the IRS. In addition, most public-school employees may receive matching funds from their employers if they contribute at least 6% of their paychecks into their 403(b) accounts each year; however, this benefit varies depending on the type of employer you work for (e.g., school district vs private). Just like with a 401(k) account, these funds can be withdrawn after age 59½ without having them taxed or penalized—but only if there's been no previous withdrawals since opening an account.