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Level 1
April 3, 2023
Question

Is a 403b considered a type of IRA?

  • April 3, 2023
  • 5 replies
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    5 replies

    Level 15
    April 3, 2023

    It’s not a type of IRA and is similar to a 401-K. 

    VolvoGirl
    Level 15
    April 3, 2023

    Why are you asking?  You do not enter 403b contributions under Deductions.  Only enter it from your W2.  Or did you take a distribution?  

    Level 10
    April 3, 2023

    If you received a distribution from any type of employe sponsored retirement plan (includes profit-sharing, 401(k), 403(b) and 457(b) plans) they are not IRA.s but are considered a type of one, Distributions  automatically qualify as RMDs

    JohnB5677
    Level 15
    April 3, 2023

    No, but they both are tax deductible retirement savings plans that grow tax deferred.  

     

    The 403(b) is a Qualified retirement plan. A 403(b) is only available to employees of certain organizations, and it has higher annual contribution limits.  

    • The limit on elective salary deferrals - the most an employee can contribute to a 403(b) account out of salary - is $22,500 in 2023 ($20,500 in 2022.
    • Employees who are age 50 or over at the end of the calendar year can also make catch-up contributions of $7,500 in 2023, and $6,500 in 2022, 
    • Retirement Topics - 403(b) Contribution Limits

    The IRA (Individual Retirement Account) can offer a variety of options for tax and investment purposes.

    • Traditional IRAs can be held by banks, investment firms and brokerages, so there are many options for investing and growing your savings. 
    • You can contribute up to $6,000 annually toward all of your IRAs 
    • ($7,000 if you’re age 50+) or up to your maximum taxable income for the year, whichever is higher.
    • Retirement Topics - IRA Contribution Limits

     

    If this does not completely answer your question, please contact us again and provide some additional details.
     

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    Level 15
    April 3, 2023

    A 403(b) is not any type of IRA.