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 ?
However, Fahey said she also earned a tax-sheltered annuity, or TSA, of $6,840 with the school district in 2011-12, bringing her total compensation to $113,261.
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.
Thus, he will be getting an extra $35,271 - $16,300 of which will be paid into a tax-sheltered annuity, or TSA, according to district budget manager Caroline Passerotti.
The rating affirmations reflect Security Benefit Life's very strong position in the tax-sheltered annuity market, its very strong operating performance, its extremely strong capitalization, and its improved asset and liability risk profile.
The 3Com voice platform supports Interactive Intelligence's call center solution, which enables call center representatives to promptly service agents dialing in for information on Aviva's life insurance, structured settlements and tax-sheltered annuity products.
Other parts of Berman's Eugene contract include a $12,200 tax-sheltered annuity in his first year, and $7,200 a year thereafter; a $550 monthly car allowance; and 25 days of paid vacation.
The products offered include: individual single premium and flexible premium fixed-rate annuities; individual and group variable annuities, including contracts for the 403(b) tax-sheltered annuity market; individual universal life and variable life insurance products, including bank-owned life insurance (BOLI) policies and specially designed policies for high-new-worth clients.
SBL has a very strong business profile because of its well-established position in the tax-sheltered annuity market, specifically in the K-12 portion of the retail 403(b) market segment.
Annuities: Maintain current payments to PERS on district tax-sheltered annuity
NYSE: PVT) today jointly announced the signing of a definitive agreement under which an American General affiliate will acquire Provident's in force individual and tax-sheltered annuity business.
We focus on the 403 (b) market and are a leading tax-sheltered annuity dealer in the marketplace," Shermann elaborated.