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posted Jun 6, 2019 12:57:49 AM

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.

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1 Best answer
Intuit Alumni
Jun 6, 2019 12:57:50 AM

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).

3 Replies
Intuit Alumni
Jun 6, 2019 12:57:50 AM

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).

Not applicable
Nov 13, 2019 11:08:41 AM

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?

Level 15
Nov 13, 2019 3:05:13 PM

Correct on both points.