Should I enter my 403B as a traditional IRA? I am being assessed a penalty of 6% even though I contributed less than $5500 to my Roth and less than $10000 to my 403B.

[IreneS · Accepted solution]

No.  Your 403B is considered a pension plan and NOT an IRA.  A major difference between the two is that almost anyone can open an IRA, but 403(b) accounts are limited to employees of nonprofit organizations. An individual can't set up a 403(b).  It is important to identify contributions correctly.

Make sure you are not entering your 403b contributions separately.  The 403b contributions are included on your W-2 (in box 12 with code E).

[Anonymous]

Okay:

1.

So let me know if this is correct:  403b plans are part of pension so you don't add them to anywhere, they are including in your w-2 when doing taxes?

2.  Does it reduce my taxable income and AGI, therefore decreasing what I pay in taxes overall?  In other words, does it act like a deduction of sorts.  I realize it isn't a deduction but here's a scenario.  I make 75K a year and put 5K a year in 403b, I'm only taxed at 70K?  Am I right on this assumption?

[Critter]

Correct on both points.