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


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

  1. How to recover from withdrawls to your Teacher’s Retirement Plan?

    I used my retirement to try to save my husbands business in 2008.

    ***Sorry to hear that.

    I am beginning again and going into my second year of teaching along with years recently of long term and daily substitute teaching (not sure if any was put in for those years).

    ***We will need to check on that.

    I need to quickly get the most retirement I can.

    Which is better, faster, more;

    calstrs.com  CalStars appears to be mandatory and automatic for you. Contributions are limited to a percentage of your earnings. See page 24 of the CalSTRS member handbook.

    tsa’s, Tax Sheltered Annuities

    or both?

    ***Both.   Please email us your date of birth, last years tax return, estimated earnings for 2016 and beyond, all relevant documents you’ve received from the school district, when you plan to retire and anything else that might be relevant.

    We need to figure out the maximum you can contribute to a TSA – Tax Sheltered Annuity.  IRS Publication # 571 Page 4 

    Lucerne valley elementary school # 400393

    Email us [email protected] and give us your information, we will get you quotes and proposals.

  2. I would like to check my current balance for my retirement account with you guys,

    can I do this from online?

    Should I be getting things in the mail regarding my account?

  3. 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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