---------- tax sheltered annuity ----------
Ever heard of a 403(b) tax sheltered annuity? If you haven't, don't fret, you're part of the majority. Tax sheltered annuities are relatively unknown due to the fact that there are certain prerequisites that must be met before an employer can qualify.
Who is eligible for a tax sheltered annuity?
- Public schools / colleges / universities
- Churches
- Charitable entities tax-exempt under section 501(c)(3) of the IRS code
A 403(b) tax sheltered annuity is somewhat similar to a 401k in the fact that recipients are able to set aside some of their salary. The benefit of being able to do this is that the money that is set aside in the 403(b) account goes generally untaxed until it is distributed.
What are the benefits associated with a 403(b) tax sheltered annuity?
- Highly flexible levels of contribution
- This is the only "salary deferral" plan for public school employees
Although a 403(b) tax sheltered annuity offers less investment options than the more standard 401k plans, it provides other benefits making into a worthwhile financial investment for those who are eligible. For more information, check out the 403(b) tax sheltered annuity section of the IRS website at www.IRS.gov.
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How can annuties allow for an easier RETIREMENT ?
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