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 ?
Although a tax-sheltered annuity is allowed to accept such a rollover, it is not required to do so.
The 403(b) Tax-Sheltered Annuity will appeal to individuals who want the security of lifetime income coupled with death benefit protection.
Consider, for example, that a tax-sheltered annuity participant has accumulated $100,000.
Both self-employed ministers and employee ministers may participate in their church's or denomination's tax-sheltered annuity plan.
Distribution Codes G (for direct rollover to an IRA) and H (for direct rollover to a qualified plan or tax-sheltered annuity) are used to report direct rollover distributions.
In addition, the district would have had to pay Berman two years' worth of a tax-sheltered annuity - which totals $600 a month - and other fringe benefits, but not health care or retirement benefits.
The maximum annual elective deferral per individual in 2001 in a qualified cash or deferred arrangement (CODA) (IRC section 401(k)), tax-sheltered annuity (section 403(b)) or simplified employee pension (SEP) plan (section 408(k)) is $10,500 (indexed annually for inflation).
She will continue to receive health insurance and a tax-sheltered annuity during the six months of severance pay.
The new program also may be used by sponsors of tax-sheltered annuity plans under IRC section 403(b).
"Church-controlled organizations" that maintain tax-sheltered annuity plans (Sec.
He also would receive $12,200 in a tax-sheltered annuity and $6,600 in an auto allowance.