403(b)

Retirement

A 403(b) plan is a retirement plan for employees of public schools, nonprofit hospitals, charities, and religious organizations — analogous to 401(k) for private-sector employees. Same employee contribution limit ($24,000 for 2026 + $7,500 catch-up at 50+). Traditional pre-tax and Roth options available. Historically, 403(b) plans suffered from high-fee annuity products (TIAA, CREF) — newer plans increasingly offer low-cost index fund options. The 15-Year Catch-Up Rule allows additional contributions for long-tenured employees. Coordinate with 457(b) plans (often available simultaneously to government workers) for combined high-contribution strategies.