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New Member
posted Apr 3, 2023 11:30:16 AM

Is a 403b considered a type of IRA?

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5 Replies
Level 15
Apr 3, 2023 11:42:25 AM

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

Level 15
Apr 3, 2023 11:44:22 AM

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
Apr 3, 2023 11:45:28 AM

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

Expert Alumni
Apr 3, 2023 12:03:02 PM

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.
 

Level 15
Apr 3, 2023 12:58:39 PM

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