What is a 403a retirement plan?

A 403a retirement plan is an annuity based plan sponsored by a person's employer, according to Insurance Providers. The plans are only offered by certain companies.

Some non-profit companies offer 403a annuity plans as stated by The Nest. It is up to the company whether or not it wants to offer the plan. Annuity plans allow people to invest by having their payroll deducted. Employers can also contribute to the plan on behalf of the employees if they want to do so. The plans build up income and at the request of the investor, they pay out a set amount of income. Some plans require penalties to be paid if they pay out early.