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Glossary Term: 403(B) PLAN

Definition(s) for 403(B) PLAN:


1. ) Similar to the 401-k plan offered to corporate employees, this is a retirement-savings plan for employees of colleges, hospitals, school districts and nonprofit organizations. The plan is funded by employees with contributions that are deducted from pre-tax money. Employees manage the money themselves, selecting from fixed and variable annuities, and mutual funds offered by the investment management company selected by the employer. Investment gains are not taxed until the money is withdrawn usually during retirement.



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