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Investopedia / Michela Buttignol A 403(b) plan, also known as a Tax-Sheltered Annuity (TSA) plan, is a retirement savings account offered to employees of schools, the public sector, and non-profits.

Millions of public school employees, along with some employees at colleges and universities, hospitals, charities, and other nonprofit organizations, use 403(b) plans to save for retirement.