A tax-deferred annuity (TDA), also known as a 403(b) retirement plan, is available to employees of certain public education organizations, non-profit organizations, cooperative hospital service organizations and self-employed ministers. An IRA, on the other hand, is available for any individual with an earned income.
A TDA can accept contribution up to $18,000 in 2016, while an IRA can only accept up to $5,500. TDA plans may also allow the loan option, while borrowing from an IRA is not possible.
With a TDA, investing in individual stocks is not allowed. With an IRA, typically there is no restriction on investment option.
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