The Truth About Buying Annuities

Chapter 13. Tax-sheltered annuities

	“In this world, nothing can be said to be certain, except death and taxes.”
	--Benjamin Franklin

Say the acronym TSA, and many people will think about the Transportation Security Administration and long lines at airport security checkpoints. However, say TSA to a teacher, a hospital worker, a self-employed minister, or an employee of an Native American tribal government, and TSA may have a much different meaning. To them, the term means tax-sheltered annuity.

A TSA is an annuity that is contained in a 403(b) plan. The 403(b) is the equivalent of a 401(k) for people who work for school systems, hospitals, or other non-profit charitable institutions. Like a 401(k), your contribution to a 403(b) is limited. In fact, ...