# 403(b)

*Retirement & Benefits — Finicade finance glossary*

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.

**Also known as:** 403b, tax-sheltered annuity, TSA plan

**Related terms:** [401(k)](https://finicade.com/glossary/401k), [457 Plan](https://finicade.com/glossary/457-plan), [Employer Match](https://finicade.com/glossary/employer-match), [Expense Ratio](https://finicade.com/glossary/expense-ratio), [Variable Annuity](https://finicade.com/glossary/variable-annuity)

Source: https://finicade.com/glossary/403b