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A 403(b) plan is a retirement savings plan for employees of public schools, non-profits and certain churches. This is a retirement plan in addition to any type of pension your employer may offer. With a traditional 403(b) plan your contributions are tax-deferred, meaning you pay taxes on the money when you take it out of the plan. With a Roth 403(b) plan you pay taxes on the contributions up front, but the money grows tax-free.
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