What is a 403(b)? A 403(b) is a tax-deferred retirement savings plan for employees of educational institutions and certain nonprofit organizations. The name refers to the section of the Internal Revenue Code that governs the plan. The 403(b) was created in 1958 and is sometimes referred to as a tax-sheltered annuity (TSA), or tax-deferred annuity (TDA). In 1974 Congress added paragraph (7) to the plan which allowed employees for this first time to set up retirement plans directly with mutual fund companies. Prior to this change participants were limited to investment choices offered by insurance companies. Throughout this site the term 403(b) is intended to mean all of the following: 403(b), 403(b)(7), TSA, and TDA.   next question    back to 403(b) questions view 457(b) questions    view investment questions					403(b) Vendor List 457(b) Vendor List Savings Calculator Savings Distribution Calculator 403(b) Questions 457(b) Questions Investment Questions District Contacts Daryl DiZenzo Payroll/Benefits Accountant 203.594.4016 Mike Lagas Business Manager 203.594.4014 more resources