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    2. Personal Finance Dictionary»
    3. 403(b)Plan»

    Definition of 403(b)Plan

    Definition for: 403(b)Plan

    A "403(b) plan" is a plan that is designed as a retirement savings plan, used by tax-exempt organizations such as charities, schools, and churches. There is an allowable limit of contribution which changes over time and the contributions are taken from the salary of the employee. Any withdrawal from the 403(b) plan has a penalty if the withdrawal is made before the allowable age.

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