Series 22: 1.2.3.1.1. Tax-Sheltered Annuities

Taken from our Series 22 Top-off Online Guide

1.2.3.1.1. Tax-Sheltered Annuities

A tax-sheltered annuity (TSA) is a retirement plan for employees of tax-exempt organizations, such as public schools. These are employer-sponsored plans in which employee contributions are deducted from their paychecks. The employer also makes contributions to the plan. Since the contributions are made with pre-tax dollars, contributions and earnings are tax-deferred until the employee withdraws them from the plan.

One type of tax-shelter

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