What type of retirement account is similar to a 401(k) but is specifically offered by non-profit organizations?

The 403(b) plan is specifically designed for employees of certain tax-exempt organizations, such as non-profit organizations, schools, and religious institutions. It functions very similarly to a 401(k) plan, allowing employees to contribute a portion of their salary on a pre-tax basis, which can then grow tax-deferred until retirement. This type of account allows for various investment options, similar to a 401(k), making it an appealing choice for individuals working in the non-profit sector.

The other options represent different types of retirement savings options. The 457 plan is available primarily to state and local government employees, whereas a Pension Plan refers to a defined benefit plan that provides a fixed monthly benefit at retirement, not tied to individual contributions like a 403(b) or 401(k). A Roth IRA, on the other hand, is an individual retirement account where contributions are made after-tax, and it can be utilized by anyone meeting certain income requirements, but it is not specifically associated with non-profit organizations. Thus, the 403(b) is the only option uniquely aligned with non-profit and certain public sector employment.