Section 403(b) plans are also referred to as a tax sheltered annuity or TSA. They are a special type of retirement plans for certain tax-exempt organizations and public education organizations.
Section 403(b) was created by Congress in 1958 to limit the contributions being made toward tax-deferred vehicles. In 1961 the plans were extended to public school employees. In 1964 many of the current regulations were written and implemented.