How do 403b work?

A 403(b) plan is a retirement savings plan specifically designed for employees of public schools, certain non-profit organizations, and some religious institutions. It allows participants to contribute a portion of their salary on a pre-tax or after-tax (Roth) basis, which can then grow tax-deferred until withdrawal during retirement. Employers may also make matching contributions or add to employee accounts. Withdrawals made before age 59½ may incur penalties and taxes, with certain exceptions.