Tax Deferral - Annuities

TSA Teacher’s Retirement Plans
Tax Sheltered Annuities

TSA’s Teacher Savings Account
Tax Sheltered Annuities

If you are a Teacher or an employee of many tax exempt organizations you  are encouraged, permitted and allowed by the Internal Revenue Code §403 (b)  to save for your retirement with a Tax Sheltered Annuity.

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.

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

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

Email us for a complementary analysis & quote

 

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 & Links

12 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 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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