| The following terms are largely unique to the 403(b). This list is purposely short as we want visitors to suggest additional terms
for inclusion in the 403(b) Glossary. Send us your suggestions for terms and definitions (if you have them) using our general contact form. |
| 403(b)(7) |
| Prior to 1974, 403(b) participants could only invest in annuity products. Congress added paragraph 7 to the 403(b) in 1974 permitting the investment in mutual funds through a 403(b)(7) custodial account. |
| 90-24 |
| No longer permitted IRS revenue ruling which allowed participants to transfer 403(b) money from an employer-sponsored vendor to an outside-of-plan vendor. |
| Hold Harmless |
| Agreement that school districts have made vendors sign absolving them of legal repercussion from plan violation. It is uncertain what relevance or role these agreements will have when the new regulations go into effect. |
| Meaningful Notice |
| IRS requirement that employer provide annual notification to employees of their eligibility to participate in a 403(b). |
| TSA |
| The 403(b) plan is often erroneously referred to as a TSA or Tax Sheltered Annuity. This is a misnomer as it gives the impression that participants can only invest in annuity products. In addition to annuity products, participants may invest in mutual fund products through a custodial account. The plan is named after the IRS code [403(b)] which governs it. |
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