A 403(b) retirement plan:
Is typically established by not-for-profit 501(c)(3) employers, hospitals, self-employed ministers, and public education organizations.
Allows eligible employees to make salary reduction contributions into the plan on a pre-tax and/or after-tax (Roth) basis.
If the contributions are pre-tax, earnings within a 403(b) plan accrue on a tax-deferred basis. If they are after-tax (Roth), earnings within a 403(b) plan accrue on a tax-free basis. Certain restrictions apply.
Role of the Employer
Employers offering a 403(b) plan may make employer matching or employer basic (non-elective) contributions to the plan on behalf of the eligible employees.
As a general rule, the administration associated with a 403(b) plan is less involved than the administration of a 401(k) plan.