The first question a participant should ask about a 403(b) plan is whether there is a limit to the contribution amount per year, according to the California State Teachers' Retirement System. A participant must stay within the limits, and penalties apply if contributions made to the account exceed them.
The next question participants should ask concerns what happens when an applicant changes employers, notes the California State Teachers' Retirement System. In this case, the IRA allows an account owner to roll over all or part of the contribution to a retirement plan. However, the plan to roll the contributions to must be an eligible plan, which could include the IRA, other 403(b) plans and qualified retirement plans.
Another question relating to a 403(b) participant is whether the IRA taxes distributions after retirement. As of 2011, because the IRA regards these contributions as income, the payments are taxable as full income, explains the California State Teachers' Retirement System.