403(b) plans are special retirement plans for public school employees, and certain tax-exempt organizations.
Distributions are considered taxable income. Distributions are made once there is a triggering event such as you reach age 59½, you suffer a hardship, the plan terminates, or you die, become disabled or sever employment.
Most plans require RMDs (required minimum distributions) to begin at age 70½. If you take any distributions prior to reaching age 59½, you may be subject to a 10% penalty from the IRS unless an exception applies.
Loans may be taken from a 403(b) if the plan permits it. Withdrawals for loans are not usually taxable but your plan administrator can tell you whether your plan meets the criteria allowing you to take a loan without triggering a taxable transaction.