tax-deferred annuity

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Related to Tax Deferred Annuities: Nonqualified annuity, Single Premium Deferred Annuity

tax′-deferred` annu′ity

an annuity that enables one to purchase an insurance product that will earn interest, with the tax obligation deferred until withdrawals begin, usu. at retirement.
Abbr.: TDA
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Distributions from tax deferred annuities are subject to ordinary income taxes, unless rolled over into a traditional Individual Retirement Arrangement (IRA), another 403(b) plan, a 401(k) plan, a 457 government plan, or a 401(a) qualified retirement plan.
Here are some other advantages that he points out about fixed guaranteed tax deferred annuities:
Three such alternatives are tax deferred annuities, tax-free investments and savings bonds.