Florida 2-14 Life and Annuity Practice Test 2026 – Comprehensive Exam Prep

A 403(b) plan is a tax-advantaged retirement savings option available to employees of public schools and qualified nonprofit organizations. Contributions are made on a pre-tax basis (in the traditional form) and earnings grow tax-deferred until withdrawal, with some plans offering after-tax Roth-style options as well. It’s not a cash-value life insurance policy; rather, the account holds investments such as annuity contracts or mutual funds funded through elective deferrals. You can roll over 403(b) funds into other retirement accounts like an IRA or another employer-sponsored plan, so the idea that it cannot be rolled over isn’t correct. The plan isn’t limited to government employees; it specifically serves employees of public schools and qualifying nonprofits.