Tax-Sheltered Annuity

Tax-Sheltered Annuity
A type of annuity that allows an employee to make contributions from his or her income into a retirement plan. The contributions are deducted from the employee's income and, as a result, the contributions and related benefits are not taxed until the employee withdraws them from the plan. Because the employer can also make direct contributions to the plan, the employee gains the benefit of having additional tax-free funds accruing.

In the U.S., one specific tax-sheltered annuity is the Internal Revenue Code's Section 403(b) plan. This plan provides employees of certain non-profit and public education institutions the benefit of having a tax-sheltered method of saving for retirement.

There is usually a maximum amount that an employee can contribute to the plan, but sometimes there are "catch-up" provisions that allow employees to make additional contributions to make up for previous years where they did not make the maximum contribution.


Investment dictionary. . 2012.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • 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… …   Financial and business terms

  • tax sheltered annuity — (TSA)  Insurance product that allows an investor avoid or reduce tax liabilities. Taxes are usually deferred until the end of a specified period of time …   American business jargon

  • IRS Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools And Certain Tax-Exempt Organizations — A document published by the Internal Revenue Service (IRS) that provides tax information for filers who have a 403(b) retirement plan. IRS Publication 571 indicates who can contribute to a 403(b) plan, the maximum contribution that can be made to …   Investment dictionary

  • Annuity Contract — The written agreement between an insurance company and a customer outlining each party s obligations in an annuity coverage agreement. This document will include the specific details of the contract, such as the structure of the annuity (variable …   Investment dictionary

  • Economic Growth and Tax Relief Reconciliation Act of 2001 — The Economic Growth and Tax Relief Reconciliation Act of 2001 (USPL|107|16, USStat|115|38, June 72001), was a sweeping piece of tax legislation in the United States. It is commonly known by its abbreviation EGTRRA, often pronounced egg tra or egg …   Wikipedia

  • TSA —  Tax sheltered annuity …   American business jargon

  • TIAA-CREF — Teachers Insurance and Annuity Association – College Retirement Equities Fund Type Not for profit Founded 1918 Headquarters New York Cit …   Wikipedia

  • 403(b) Plan — A retirement plan for certain employees of public schools, tax exempt organizations and certain ministers. Generally, retirement income accounts can invest in either annuities or mutual funds. Also known as a tax sheltered annuity (TSA) plan .… …   Investment dictionary

  • TSA — Transportation Security Administration (Governmental » Transportation) Transportation Security Administration (Governmental » US Government) Transportation Security Administration (Community » Law) Transportation Security Administration… …   Abbreviations dictionary

  • TSA — most frequently refers to:* Tourette Syndrome Association, advocacy organization * Transportation Security Administration, in the United States Department of Homeland SecurityTSA may also refer to:* Taipei Songshan Airport s IATA code * Tax… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”