No, you don't add your work-sponsored 403(b) contributions to a Roth IRA on your tax return. Here is why.
Roth 403(b) vs. Roth IRA:
- A Roth 403(b) is an employer-sponsored plan where you contribute after-tax dollars, and withdrawals are tax-free in retirement
- A Roth IRA is an individual retirement account that you can open independently, with contributions made directly by you
Employer-Sponsored Plan:
- Contributions to a 403(b) plan, even if they go into a Roth account within the plan, are not considered personal IRA contributions
- These contributions are reported on your W-2 form and are already accounted for in your taxable income
Contribution Limits for 2024:
Roth 403(b):
- The contribution limit is $23,000 for employee contributions.
- If you are 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $30,500
Roth IRA:
- The contribution limit is $7,000
- If you are 50 or older, you can make an additional catch-up contribution of $1,000, bringing the total to $8,000
Can You Invest in Both?
Yes, you can invest in both a Roth 403(b) and a Roth IRA, provided you meet the eligibility requirements and adhere to the contribution limits for each account
For more detailed information, you can refer to the IRS guidelines on Roth 403(b) contribution limits and Roth IRA contribution limits. Additionally, TurboTax provides helpful articles on Roth 401(k) and Roth 403(b) plans and Roth IRA contributions.
