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 ?
The service is now available to employees within the Texas Tech University System who have chosen a defined contribution retirement plan under the Optional Retirement Plan (ORP) and under the Tax Sheltered Annuity (TSA) plan.
5 million after-tax special item to recognize gains related to the previously announced sale of UNUM's tax sheltered annuity (TSA) businesses.
In recapping significant events of 1995, Orr cited new product introductions; increased investment in the company's risk management capabilities; and decisions to sell UNUM's tax sheltered annuity and dental businesses, and to consolidate two data and print/distribution facilities into one center.