If you work for a nonprofit organization—a hospital, school, or government agency, among many other kinds of groups—you can't participate in a 401(k) plan as a way to save for retirement. But not to worry: Many nonprofit employers offer 403(b) plans, which closely resemble 401(k)s and also can help you put away pre-tax dollars to fund your life after work.

Although there are a few important differences between the two kinds of plans, 403(b)s are quite similar to 401(k)s. You contribute to a 403(b) plan account on a pre-tax basis through salary deductions, just as you would fund a 401(k). Your contributions are invested and can grow and compound without being eroded by current taxes. Distributions generally are taxed at ordinary income rates.

Some organizations that offer 403(b)s also may give you the option of contributing to a Roth-type account that uses after-tax dollars for contributions but provides tax-free distributions during retirement.