Tax-Deferred Annuity Plans - 403(b)
A Tax Sheltered Annuity (TSA) is otherwise known as a 403(b) plan. 403(b) is a section of the Internal Revenue Code that provides for a Voluntary Tax Deferred Retirement Program. Participation is limited by law to employees of public educational organizations and certain nonprofit organizations [501(c)(3) companies]. The vast majority of participants are teachers in public schools, colleges, and universities.
The contributions to a TSA are made for the participating employee by his/her employer. The money that is contributed usually comes from employee contributions, called elective deferrals. The elective deferral is deducted from the participant’s gross pay and forwarded to the Provider (insurance company or mutual fund custodian) which is selected by the participating employee. The participating employee signs a salary reduction agreement, giving the employer the authority to make the paycheck reduction and remits the moneys to the Provider chosen by the participant.
TSA Handbook / Plan Provisions
For additional information, please visit these websites: