Definition of "Section 403 (b) plan"

Miguel C. Martinez real estate agent

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Miguel C. Martinezelite badge icon

Coldwell Banker Realty

Retirement plan offered by public employers and tax-exempt organizations. Under Section 403(b) of the Internal Revenue Code, certain tax-exempt organizations such as public school systems can make payments for retirement annuity policies for their employees and have the payments excluded from the employees' gross income for tax purposes, subject to certain limitations.

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