Which organization types are qualified employers for 403(b) plans?

The correct response identifies the types of organizations that are eligible to sponsor 403(b) plans, which specifically target certain groups. A 403(b) plan is a retirement savings plan designed for employees of public schools and certain tax-exempt organizations, particularly those classified under section 501(c)(3) of the Internal Revenue Code.

501(c)(3) non-profit organizations are typically charitable, educational, or religious entities, and public schools fall into this category because they serve the public interest and are usually funded by government entities. Therefore, these organizations can offer 403(b) plans to their employees as a means of providing retirement benefits.

The other organization types mentioned do not qualify for 403(b) plans. Profit-driven companies are generally associated with 401(k) plans, while private corporations and state agencies may have different retirement plan offerings based on different regulations and eligibility criteria. Thus, the focus on 501(c)(3) non-profit organizations and public schools underscores the specialized nature of 403(b) plans designed specifically for these categories of employers.