Teachers’ 403(b)/Tax Sheltered Annuities Retirement Plans
403(b) retirement plans are utilized by tax-exempt organizations in the same manner that 401(k) plans are utilized by the private sector; e.g., corporations and business owners. Because annuities, which are offered by insurance companies, were the original investment vehicle used by most public schools, teachers often refer to their 403(b) plans as Tax Sheltered Annuities or TSAs. The advantages of participating in a 403(b) retirement plan are:
- Employee contributions are tax deductible;
- Investments grow tax-deferred, resulting ...