tax-deferred annuity

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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 ?
In a change that may significantly benefit highly compensated employees with large accumulations in qualified plans, tax sheltered annuities, and IRAs, the Act temporarily suspends the 15-percent excise tax on excess distributions received in 1997, 1998, and 1999.
The company's products are marketed through a network of independent agents to both the tax-qualified market, primarily selling tax sheltered annuities and nontax-qualified market.