403(b) Plans
403(b) plans are just like 401(k) accounts. See 401(k) Plans
Your 403(b) contributions reduce your wages on Box 1 of your W-2. Since your income is already reduced by your 403(b) contributions, you do not get a separate deduction on your tax return for 403(b) contributions. However, lower-income taxpayers may be eligible for the Retirement Savings Contribution Credit for 403(b) contributions made. FreeTaxUSA automatically calculates if you qualify for the Retirement Savings Contribution Credit based on the 403(b) contributions you enter in Box 12 of your W-2 and the income you enter on your tax return.
Do NOT report interest income, dividend income, capital gains, or any type of income from your 403(b) account. All investment income within a 403(b) retirement account is not taxable income on your tax return and does not get reported anywhere on your tax return. A 403(b) account is only taxed when you take a distribution from your 403(b) account and get a Form 1099-R.
Your 403(b) contributions reduce your wages on Box 1 of your W-2. Since your income is already reduced by your 403(b) contributions, you do not get a separate deduction on your tax return for 403(b) contributions. However, lower-income taxpayers may be eligible for the Retirement Savings Contribution Credit for 403(b) contributions made. FreeTaxUSA automatically calculates if you qualify for the Retirement Savings Contribution Credit based on the 403(b) contributions you enter in Box 12 of your W-2 and the income you enter on your tax return.
Do NOT report interest income, dividend income, capital gains, or any type of income from your 403(b) account. All investment income within a 403(b) retirement account is not taxable income on your tax return and does not get reported anywhere on your tax return. A 403(b) account is only taxed when you take a distribution from your 403(b) account and get a Form 1099-R.
