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Practice Management

Forbidden Investments for 403(b) Plans

Investment options are generally more limited for 403(b) plans than they are for other qualified retirement plans. 

Investment of 403(b) funds in the following are not allowed: 

  • individual stocks and bonds;
  • bank savings accounts;
  • individual treasury notes or bills; or 
  • similar types of investments traditionally available under employer-sponsored retirement plans.

Source: GAO Report to the Chairman, Committee on Education and Labor, House of Representatives, “DEFINED CONTRIBUTION PLANS 403(b) Investment Options, Fees, and Other Characteristics Varied