tax-deferred annuity


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Related to tax-deferred annuity: 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

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Physicians Compensation Survey Participants 401(k) Plans with an 28% provide a plan, Employer Match organization matches 100% of physician contributions of 4% to 6% of pay Tax-Deferred Annuity 23% provide a plan; 403(b) with an organization matches Employer Match 50% to 100% of physician contributions of pay 401(k) Salary Reduction 12% provide a plan Only Plans Tax-Deferred Annuity 35% provide a plan 403(b) Salary Reduction Only Plans
Over the past three years, the 29-year-old teacher has been investing in stocks, mutual funds and a tax-deferred annuity plan that seeks maximum capital gains.
Similarly, if you are offered some tax-deferred annuity product to put in an IRA or Keogh, you need to scrutinize it carefully.
Other revisions in economic terms include a reduction in the early retirement penalty to 3 percent (was 6 percent) for each year an employee retires before reaching age 65; an employer contribution to employees' 403(b) tax-deferred annuity plans of 5 cents an hour worked; a change in life insurance benefits, from $6,000 for regular partimers and $12,000 for full-timers to the amount of an employee's annual salary; time-and-one-half pay for working on eight specified holidays (formerly, one); and a $20,000 increase (to $40,000) in the hospital's annual contribution to the tuition assistance program.
Significantly, though, all amounts contributed to a tax-deferred annuity count against the $7,500 maximum deferral under a 457(b) plan.
The ratings also reflect the companies' established position among the market leaders in certain individual tax-deferred annuity products, their stable liability structure and the recent capital contributions made by GAFRI to augment the surplus of GALIC and AILIC.
Tax-deferred annuity plans--403(b) and 457 plans-- also are used widely by public-sector and nonprofit workers.
Another thought: If the taxpayer does not need the tax-exempt interest for living expense purposes, consider repositioning some of these assets into a tax-deferred annuity.
The trustees sold the stock and invested in tax-deferred annuity contracts.
The tax-deferred annuity plan limit (section 403[b]) is capped at $9,500, reduced from 20% of compensation times years of service minus contributions to date with no caps.
The rebates are funneled quarterly into a tax-deferred annuity, currently earning 5.
In addition, its established presence in the individual tax-deferred annuity market provides a stable liability structure evidenced by strong surrender charge protection and above average persistency.