Teacher’s Retirement Plans Tax Sheltered Annuities

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

Power of Tax Deferral


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


IRS Publication 571 TSA


Introduction to CalSTRS.com
CalSTRS Member Handbook
CalSTRS Member Handbook


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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

Call 310.519.1335 or email us [email protected]  to get a plan going for you.

LAUSD Information

Directions for beginning or modifying a TSA

TSA Schedule due dates

TSA – Certification of Eligibility 2007

TSA – Certification of Eligiblity 2008

403b Compare

Learn more at Tax Facts for Life & Health Insurance
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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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