tax-deferred annuity

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Related to Tax Deferred Annuities: Nonqualified annuity, Single Premium Deferred Annuity

Tax-Deferred Annuity

A retirement plan in which an employee makes tax-deferred contributions from his/her pre-tax income. The employee is not taxed on the contribution until he/she begins to make withdrawals after retirement. Strictly speaking, a 401(k) is a tax-deferred annuity, but the term especially applies to a 403(b) plan, which is directed at teachers and employees of tax-exempt organizations, such as charities or churches.

tax-deferred annuity

References in periodicals archive ?
American United enjoys a very strong market position in the defined contribution pension arena, which is enhanced by its service capabilities and a broad product line of 457, 403(b) 401(k) and tax deferred annuities.