A 403(b) is considered to be a retirement plan that is offered through you employer if you work for a school, government entity, or a non-profit organization. A 403(b) is very much like a 401(k) in that you can make pre-tax contributions, your investment will grow tax-free, and you only pay a tax if you make withdrawals on your 403(b). A 403(b) is named after the section of the IRS code that is governing it. A 403(b) is an excellent way to save money for retirement and it can serve as a supplement to a traditional pension plan or retirement plan. A 403(b) lets you put a share of your salary into an employer sponsored plan to help you save for your retirement years. In a 403(b) plan, you will not have to pay taxes on what you invest until you withdraw the money. A 403(b) can help you invest your money in annuities or mutual funds. You will want to meet with an investment professional to help you to choose what is right for you in your retirement years.