tax-sheltered annuity


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Tax-sheltered annuity

A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before-tax contributions via a salary reduction agreement to a tax-sheltered retirement plan. Employers are also allowed to make direct contributions on behalf of employees.

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-sheltered annuity (TSA)

A retirement plan that permits an employee of a tax-exempt charitable, educational, or religious institution to contribute a certain portion of wages or salary into a tax-sheltered fund. Contributions serve to reduce taxable income in the year they are contributed. Taxes on income earned in the plan are deferred. Both past contributions and income are fully taxable when withdrawals are made. Also called 403(b) plan, tax-deferred annuity.
References in periodicals archive ?
Church-controlled organizations" that maintain tax-sheltered annuity plans (Sec.
Great American Plan Administrators specializes in Non-ERISA 403(b) tax-sheltered annuity and deferred compensation 457 plan administration, taking the complexity out of employee retirement plans.
He also would receive $12,200 in a tax-sheltered annuity and $6,600 in an auto allowance.
The loan is secured by amounts attributable to elective deferrals under a qualified cash or deferred arrangement or tax-sheltered annuity.
The IRS tax-sheltered annuity voluntary correction (TVC) program, established under revenue procedure 95-24 and announced in April, allows employers offering section 403(b) tax-sheltered annuities to voluntarily bring their plans into compliance with the code.
New regulations for 403(b) tax-sheltered annuity contracts, issued by the IRS in July 2007, represent the first comprehensive update for these plans in more than 40 years and will increase administrative and fiduciary responsibilities for some plan administrators.
Salary: $192,358, plus $12,200 in a tax-sheltered annuity and $6,600 in auto allowance
1, 1996, precludes source taxation of distributions from qualified retirement and annuity plans, simplified employee pensions, tax-sheltered annuity contracts, individual retirement accounts, deferred compensation plans of state and local governments and tax-exempt organizations (under Sec.
Although strong, the competitive profile is concentrated almost exclusively in tax-sheltered annuity and mutual fund products, with diversification achieved through multiple customer segments and distribution channels.
Berman also will receive $13,800 in a tax-sheltered annuity and auto allowance, but he does not get health insurance or retirement benefits.
The IRS recently expanded its enforcement initiatives to include tax-sheltered annuity plans (Sec.
Although SBL maintains a strong business position in the tax-sheltered annuity market, the operational profile is concentrated almost exclusively in annuities, as the company only has a negligible amount of non-annuity reserves.