tax-deferred annuity

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Related to Tax-Deferred Annuities: Single Premium 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 ?
Most fixed guaranteed tax-deferred annuities permit withdrawals of money, but like a CD, there can be early withdrawal penalties," Mueller said.
The Service issued an unpublished Letter Ruling (TAM)(52) involving a NIMCRUT(53) funded with tax-deferred annuities.
Described in Section 403(b) of the tax code, tax-deferred annuities permit employees of these organizations to make pretax contributions toward the purchase of retirement annuities.
Eight chapters of Pension Planning are then devoted to a variety of specific pension plan vehicles: trust fund plans, annuities; profit sharing plans, thrift and savings plans, cash or deferred plans and employee stock ownership plans; individual retirement accounts; and tax-deferred annuities.
Given the higher tax rates recently enacted, the pitfalls of such arrangements abound, but many can be avoided through the use of tax-deferred annuities.
03, page 63), suggests clients should avoid tax-deferred annuities.
Individuals have several options for saving for retirement, ranging from tax-deferred annuities and mutual funds to stocks, bonds, and cash-value life insurance policies.
If you reach retirement age while your child is in college, consider stashing education savings in voluntary retirement plans, such as your 401(k)s, IRAs and tax-deferred annuities.
As part of the financing of that law, Congress also adopted changes to the qualified plan rules governing the treatment of distributions from qualified plans or tax-deferred annuities.