tax-deferred annuity

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Related to Tax Deferred Annuity: Nonqualified 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

References in periodicals archive ?
qualified plans, Section 403(b) tax deferred annuity plans, traditional
Investing in a variable tax deferred annuity provides a particularly attractive opportunity for dollar cost averaging (see graph, page 334).
Firms that offer annuities for 401(k) rollovers will also need an effective way of addressing the "double tax deferral myth," she predicts, alluding to critics who advise against putting tax qualified money inside a tax deferred annuity.