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: Under the TDA Program, taxes are deferred on your contributions and the investment earnings you receive; the tax benefits of IRA contributions vary based on the type of IRA plan you choose and the amount of your income.
• A fourth difference is the withdrawal restrictions for these plans. Please consult your tax advisor for more information.