Who is eligible for a 403(b) Plan?

The correct answer is that employees of public education and some non-profit organizations are eligible for a 403(b) Plan. A 403(b) Plan is a type of retirement savings plan specifically designed for employees of public schools, certain non-profit organizations, and some members of the clergy.

This plan allows employees to save for retirement by making tax-deferred contributions from their salaries, which means they do not pay taxes on their contributions until they withdraw the money, typically during retirement. This tax deferral can significantly benefit individuals as they accumulate savings over time.

In contrast, other provided choices do not completely align with the definition and eligibility criteria of a 403(b) Plan. While government employees can participate under certain conditions, the plan is not exclusive to them. Individuals with any income or corporate employees do not qualify for a 403(b) Plan due to the specific nature of this retirement plan aimed primarily at educational and non-profit sectors.