Tax Sheltered Annuity

[baron]

What is a tax sheltered annuity and who can invest in one? Is a tax sheltered annuity only for teachers and nonprofit employees? How does a tax sheltered annuity reduce taxable income?

 

[Olowricha]

A Tax-Sheltered Annuity (TSA) or 403 (b) plan is a retirement plan of employees of a nonprofit and public schools. It enables you to add in pre-tax income and this reduces your current tax and is allowed to grow tax-deferred until the time of your retirement.

 

[James Miller]

A 403 (b) plan, also known as a tax-sheltered annuity, is a retirement savings plan available to school, nonprofit, and some government organization employees. It enables the members to invest before tax, which is accumulated in a tax-deferred manner until the time of retirement when it is withdrawn.

 

[Maxmayfield]

A tax-sheltered annuity (TSA) is a retirement plan that lets contributions grow tax-deferred. Mostly for teachers and nonprofit employees, it reduces taxable income because contributions are made pre-tax, with taxes paid only upon withdrawal.

 

[Daxton]

A Tax Sheltered Annuity (TSA), also called a 403(b) plan, is a retirement savings plan for employees of schools and nonprofits, allowing tax-deferred contributions and investment growth until withdrawal, helping build long-term financial security.