Investment Dictionary

403(b)

A section of the Internal Revenue Code (IRC) that created a tax-deferred retirement plan for public school employees and certain other types of non-profit organizations. Voluntary contributions must be deducted from an employee\'s paycheck. Employer contributions and transfers/rollovers are other ways that a 403(b) account can be funded. A 403(b) account can only be invested with an annuity policy or a mutual fund held under a custodial account that meets the requirements of 403(b)(7) of the IRC.

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