A 403(b) retirement savings plan is specifically designed for employees of public schools, non-profit organizations, and certain religious institutions. It allows participants to contribute a portion of their income on a pre-tax basis into an individual account, which grows tax-deferred until they choose to withdraw the funds. Similar to a 401(k) plan, a 403(b) plan offers a range of investment options, such as mutual funds or annuity contracts, enabling employees to build their retirement savings effectively. Moreover, many employers provide matching contributions, further enhancing the overall benefits of the plan.