Who typically benefits from a 403(b) plan?

A 403(b) plan is a type of retirement savings plan specifically designed for employees of certain tax-exempt organizations, including public schools, nonprofit entities, and some religious organizations. This plan allows eligible employees to make contributions on a pre-tax or post-tax basis, providing tax advantages that can significantly benefit long-term savings.

Public school employees benefit from the 403(b) plan because it provides them with a structured method to save for retirement while taking advantage of tax-deferral on contributions and investment growth. Given that public schools often operate within tight budgets, having a dedicated retirement savings option is crucial for educators and staff members looking to secure their financial futures.

The other choices do not align with the specific purpose of the 403(b) plan. Private-sector employees typically utilize 401(k) plans, freelancers and independent contractors may not have access to the same benefits as employees of public or nonprofit companies, and not all employees across various sectors can participate in a 403(b) plan. The target demographic of a 403(b) plan firmly reinforces that B is the correct answer.