A 403(b) plan is a retirement savings plan that is funded by employee contributions. Tax-exempt organizations (i.e., 501(c)(3) employers) such as churches, schools, and charities offer these plans to their employees.

A 403(b) plan is a defined contribution plan. This means that the amount you receive in retirement is based on the amount that you contribute to the plan, in addition to the investment returns you earn on those contributions.

Your investment doesn't take as big a bite from your paycheck as you might imagine, because you're investing pretax dollars in your 403(b) plan. As a result, a $100 contribution doesn't result in a $100 reduction in your take-home pay. In fact, you can save money on your income taxes now by investing in your 403(b): The income figure that the IRS uses is income after 403(b) contributions.

Teacher Retirement System of Texas (TRS) 403(b) Information

403(b) Savings Calculator

403(b) Forms