An employer-sponsored retirement plan that is primarily used by non-profit organizations, including schools and hospitals. Employees can choose to contribute a portion of their wages into an account; employers sometimes also contribute to each employee’s account, and/or match each employee’s contributions. All contributions are usually tax-deductible, and money in the account is not taxed until withdrawn, allowing for decades of tax-free growth. Participants in 403(b) plans may only invest in annuities approved by the plan’s sponsor; those participating in 403(b)(7) plans may also invest in mutual funds approved by the plan’s sponsor. See 401(k) Plan, 457 Plan, Defined Contribution Plan, IRA, Rollover IRA