403(b)
Also called: 403b, tax-sheltered annuity, TSA plan
A 403(b) is the 401(k) equivalent for public schools, universities, hospitals and nonprofits, with nearly identical contribution limits and tax treatment. Its historical difference is the product mix: many plans are dominated by high-cost variable annuities sold by insurers rather than low-cost index funds, and fees of 2% or more are still common. Teachers with a choice of vendors should compare expense ratios before anything else.