In which organizations are 403(b) plans typically found?

403(b) plans are retirement savings plans primarily designed for employees of nonprofit organizations, including public schools, certain hospitals, and charitable organizations. The structure of a 403(b) plan is similar to a 401(k) plan, but it is specifically tailored to meet the needs of those working in the nonprofit sector. These plans allow employees to set aside a portion of their earnings for retirement on a tax-deferred basis, making them an attractive option for individuals in jobs that may traditionally have lower retirement benefits compared to those in the private sector.

Organizations outside of the nonprofit realm, such as private corporations and small businesses, typically offer 401(k) plans instead, as these are the standard retirement savings vehicles for profit-driven entities. Government agencies may also have different retirement plans, such as 457 plans, which cater specifically to public employees and their retirement saving needs. Therefore, the linkage of 403(b) plans to nonprofit organizations highlights their unique function within the retirement planning landscape for those dedicated to public service and charitable work.