Lynn works for a state university.In addition to the university's regular retirement plan,Lynn participates in another retirement savings plan.She elected to have $5,000 of her salary withheld and contributed to a tax-sheltered annuity with an insurer.The type of plan that Lynn established is called a

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A 403(b) plan is a tax-sheltered annuity plan offered by public schools and certain tax-exempt organizations, such as state universities. Employees can contribute a portion of their salary to the plan and the contributions are made on a pre-tax basis. This type of plan is commonly used by teachers and employees of non-profit organizations. Therefore, Lynn's retirement savings plan is a 403(b) plan.

Lynn Works for a State University