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.
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.
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?