L&HNationalmedium
A §403(b) tax-sheltered annuity is available to employees of:
AFor-profit business corporations, sole proprietorships, and general or limited partnerships that file federal income-tax returns
§501(c)(3) tax-exempt organizations, public schools, and certain ministers and church-related employees described in §414(e)
CFederal civilian government employees only, offered to them as a direct substitute for the Thrift Savings Plan
DAny employee whose current employer does not already maintain or sponsor a §401(k) cash-or-deferred plan
Why this is the answer
IRC §403(b) authorizes tax-sheltered annuities (TSAs) and custodial accounts for three categories of employer: (1) §501(c)(3) tax-exempt charitable organizations, (2) public educational institutions described in §170(b)(1)(A)(ii) (public elementary, secondary, and higher-ed institutions), and (3) certain ministers and church-related organizations under §414(e). For-profit employers cannot establish a §403(b); their analogous vehicle is the §401(k) cash-or-deferred arrangement. Federal civilian employees participate in the §7701(j) Thrift Savings Plan, not §403(b).
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