Teacher’s Retirement Plans
Tax Sheltered Annuities
TSA

Teachers and employees of many tax exempt employers are encouraged, permitted and allowed by the Internal Revenue Code §403 (b) which permits tax deferral of your contributions to save for their retirement.

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Take a look at this chart to see how much more money you will have saved at Retirement, by using the power of Tax Deferral. North American Brochure

 

IRC §403 (b) Tax Sheltered Annuities

A 403(b) plan (tax-sheltered annuity plan or TSA) is a retirement plan offered by public schools and certain charities. It’s similar to a 401(k) plan maintained by a for-profit entity. Just as with a 401(k) plan, a 403(b) plan lets employees defer some of their salary into individual accounts. The deferred salary is generally not subject to federal or state income tax until it’s distributed. However, a 403(b) plan may also offer designated Roth accounts. Salary contributed to a Roth account is taxed currently, but is tax-free (including earnings) when distributed.

Eligible employers are a:

  • public school, college, or university,
  • church; or
  • charitable entity tax-exempt under Section 501(c)(3) of the Internal Revenue Code

 

 

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Pros and Cons:

  • Flexibility in contributions
  • Investment options are limited to those chosen by the employer
  • may have high administrative costs
  • optional loans and hardship distributions add flexibility for employees

Additional resources

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6 comments on “TSA-Teacher Retirement Plans – Tax Sheltered Annuities

  1. I am a first grade teacher at xyz Elementary. I spoke with Curr H about my plan about a year ago or a little over. My pay stub is currently showing that I pay $75 and it’s labeled TSA LIFE INS CO.

    My question is, is this a life insurance policy or is a retirement plan policy?

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