Which plan is primarily available for employees of nonprofit organizations and public educational institutions?

The 403(b) Plan, often referred to as a tax-sheltered annuity (TSA), is specifically designed for employees of nonprofit organizations and public educational institutions. This retirement savings plan allows these employees to contribute a portion of their salary on a pre-tax basis, which helps them save for retirement while reducing their current taxable income.

Unlike 401(k) plans, which are targeted more towards for-profit businesses, or 457(b) plans, which are often used by governmental and certain nonprofit entities but not exclusively by them, the 403(b) plan is distinctly available to a specific group of employees: those working in educational and charitable sectors. This specialized focus provides these employees with benefits tailored to their unique employment situations and financial goals.

Additionally, a Traditional IRA is an individual retirement account not limited to specific employment sectors and allows individuals to contribute independently of their employer. Therefore, the 403(b) Plan clearly stands out as the option specifically available for nonprofit and public educational employees, making it the correct choice.