What Is A 403B Retirement Plan? 
403 -LRB- b -RRB- plans were also called tax-sheltered annuity back in the day . A 403 -LRB- b -RRB- plan is a tax-advantaged retirement savings plan under Economic Growth and Tax Relief Reconciliation Act of 2001 for public education organizations , some 501 -LRB- c -RRB- -LRB- 3 -RRB- organizations -RRB- , cooperative hospitals , and self-employed ministers . Employee salary deferrals into a 403 -LRB- b -RRB- plan are made pretax and they grow tax-deferred with distributions taxable when withdrawn from the plan . 