tax-deferred annuity

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tax′-deferred` annu′ity


n.
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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References in periodicals archive ?
Other benefits include 20 days of vacation, 20 paid sick days, and $17,546 to purchase permanent life insurance, long-term care insurance, long-term disability insurance, tax-sheltered annuities or a contribution to the college's deferred compensation plan.
To address this confusion, in 1979 the Department of Labor (DOL) created a safe-harbor exclusion from ERISA coverage for certain tax-sheltered annuities and individual retirement accounts (IRAs), provided that employer involvement was limited.
He is the author of over 28 books, including 17 editions of "Nonqualified Deferred Compensation Plans," "Tax-Sheltered Annuities Under s.
For example, Balderas' contract includes a $400 increase in the amount of tax-sheltered annuities he is to receive for his retirement plan, from $600 to $1,000 per month.
403(b) plans, generally known as tax-sheltered annuities. The tax law treats distributions from qualified plans and tax-sheltered annuities similarly, a treatment generally familiar to tax practitioners.
In order to set up a SIMPLE IRA plan, the employer must not maintain another employer-sponsored retirement plan (including qualified plans, tax-sheltered annuities, and SEPs) and in the preceding year must have employed 100 or fewer employees earning at least $5,000.
Tax-sheltered annuities, the kind employees of nonprofit institutions put into 403(b) plans with pretax money, have been around since 1958.
They also describe the different types of plans, including top-heavy plans, 401 (k) plans, employee stock ownership plans, multiemployer plans, Roth IRAs, simplified employee pensions, saving incentive match plan for employees, rollovers, and tax-sheltered annuities. An appendix provides tables detailing IRC sections, Treasury regulations, ERISA sections, Department of Labor regulations, revenue rulings and procedures, letter rulings, notices and announcements, cases, and PBGC--Pension Benefit Guaranty Corporation--related material.
[For instance, "tax-sheltered annuities" under Section 403(b) of the Internal Revenue Code mandated annuities as the only acceptable product until 1974; in addition Section 408(b) of the Internal Revenue Code provides for "individual retirement annuities" as one of the methods to fund an IRA.]
In this section, the savings incentive match plan for employees (Simple IRA) has more pages devoted to it than to simplified employee pension (SEP) plans or to section 403(b) tax-sheltered annuities. The guide points out that, under a Simple IRA, a contribution is required even if the business is not profitable.
403(a) annuity plans, 403(b) tax-sheltered annuities and 457 eligible governmental plans.