A plan sponsored by a section 501(c)(3) tax-exempt organization (including a church) or a state educational organization funded with annuity contracts or custodial accounts (mutual funds). Also referred to as tax-sheltered annuities (TSAs) or tax-deferred annuities (TDAs), these plans may permit employee deferrals only, or a combination of employee deferrals and employer contributions, whether by a percentage of pay or pursuant to a matching formula. These plans may be subject to Title I of ERISA if not a governmental plan and if the employer is deemed to be actively maintaining a plan under ERISA.

This definition is in context to Employee Benefits. See more contextual defintions for 403(b) Plan.