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A 403(b) retirement plan is an employer-sponsored plan for employees of public schools and certain 501(c)(3) tax-exempt organizations. Also known as a tax-sheltered annuity plan, a 403(b) is ...
Employee salary deferrals into a 403(b) plan are made before income tax is paid and allowed to grow tax-deferred until the money is taxed as income when withdrawn from the plan. 403(b) plans are also referred to as a tax-sheltered annuity ( TSA ) although since 1974 they no longer are restricted to an annuity form and participants can also ...
Tax-Deferred Accounts. Tax-Exempt Accounts. Account types – IRA, – 401(k) – SEP IRA – 403b – Roth IRA – Roth 401(k) Tax treatment – Lower taxable income in the year you contribute
Qualified annuities: Annuity contributions made with pre-tax money such as in a traditional IRA or traditional 401(k) or 403(b) plan, are taxable when they’re distributed from the account. Any ...
It’s like a 401(k), except for a different type of employee.
Tax-deferred growth. Money inside an annuity grows tax-deferred. Gains on the amount of premium invested in the contract grow with no taxes due until the money is withdrawn, ...
Tax benefits: Earnings within the annuity grow tax-deferred. Cons. Loss of control: Once you invest in an income annuity, you generally cannot access the principal amount. It can be difficult ...
A traditional 403(b) plan offers several advantages: Pre-tax contributions: Pre-tax contributions reduce your taxable income in the year you contribute. Tax-deferred growth: Your contributions ...