There are many different benefit vehicles available through employers for their employees depending on the type of entity. One specific benefit vehicle is a 403(b) or Tax-Sheltered Annuity (TSA). According to the Internal Revenue Service, a 403(b) or TSA plan is a retirement plan offered by public schools and certain charities and is similar to a 401(K) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts.
Of course, with any benefit vehicle there can be both advantages and disadvantages. Below is a table that outlines various features specific to a non-elective 403(b) plan; where an employer is making contributions to an employee’s account.