1. 63183 POINTS
    Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    Tax sheltered annuities (TSA's) are a type of retirement plan that allows employees of eligible public educational organizations or tax exempt organizations to contribute part of their pre-taxed salary to the plan with tax deferred growth. Employers are also allowed to contribute to a tax sheltered annuity for the employee. Authorized by IRS Section 403(b), TSA's are also called 403(b) plans.
    Answered on May 17, 2013
  2. 61682 POINTS
    Steve SavantPRO
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Qualified annuities generally refer to tax deferred annuities is a qualified plan like ab ERISA (Employee Retirement Income Security Act of 1974( qualified plan such as a 410(k). By inserting tax deferred annuities into a qualified plan contribution re-characterizes the basis as taxable during distributions, i.e. the entire annuity distributions are taxable as ordinary income. 
    Answered on August 8, 2013
  3. 37396 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    An employer can establish a plan in which contributions are deducted from the employees reported income and the money is invested in an annuity. The money placed in the annuity and the interest that it earns are not subject to current income tax. The benefits, when withdrawn are taxable as ordinary income. The best known Tax Sheltered Annuity is allowed under section 403(b) of the Internal Revenue Code.
    Answered on February 24, 2015
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