There are several key differences.

• While IRAs are generally available to all investors, Section 403(b) Programs are only available to employees of educational institutions, hospitals, and certain other tax-exempt organizations.
• Another key difference is the maximum amount that you can contribute to each plan: The maximum annual TDA contribution limit is generally higher than the maximum annual IRA contribution amount.
• A third difference involves tax benefits: The tax benefits of IRA contributions vary based on the type of IRA plan you choose and the amount of your income. Similarly, the tax benefits for TDA participation depend on whether you participate in the traditional option or the Roth option or both. Please consult a trusted tax advisor for details.
• A fourth difference is the withdrawal restrictions for these plans. Please consult your tax advisor for more information.