Which type of retirement plan is available primarily to public schools and non-profit organizations?

The correct answer is 403(b) plans, which are specifically designed for employees of public schools, certain tax-exempt organizations, and some ministers. This type of retirement plan allows employees to save for retirement through tax-deferred contributions, similar to 401(k) plans, but with distinct eligibility requirements relevant to the missions of non-profit and educational institutions.

403(b) plans offer various investment options, including annuities and mutual funds, and are governed by specific IRS regulations that cater to the needs of public and non-profit sector workers. This focus on the non-profit sector distinguishes 403(b) plans from other retirement options.

The other types of retirement plans mentioned have different eligibility criteria and primary user bases. Profit sharing pension plans, for example, are typically associated with for-profit businesses and can be utilized by a wide range of companies. Keogh plans are designed mainly for self-employed individuals and their businesses. Defined contribution pension plans, while also available to various employers, do not specifically cater to public schools and non-profits in the same way that 403(b) plans do.