Glossary of Financial Terms # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 403(b) Plan A retirement plan that permits employees of public schools and 501(c)(3) tax-exempt organizations to have salary and/or employer contributions made on a pre-tax basis. Contributions grow tax-deferred until withdrawn. 403(b)(7) Plan A type of individual retirement account (IRA) designed specifically for employees of qualifying nonprofit organizations (i.e., public schools, public hospitals, churches). A 403(b)(7) plan enables these employees to defer taxes on a portion of their salaries by earmarking that portion for the retirement plan. Several investment options, including funds, are generally offered for investment. 401(k) Plan An employer-sponsored retirement plan that enables employees to defer taxes on a portion of their salaries by earmarking that portion for the retirement plan. Several investment options, including a range of funds, are generally offered. Contributions grow tax-deferred until withdrawn.