Tax Sheltered Annuity
Is a company: no
Is a proper noun: no
Notes: See also Tax Deferred Annuity (TDA).
- taxation shield
- tax saving annuity
- tax-sheltered annuity
Definition of Tax Sheltered Annuity
- A form of annuity set up an employer for their employee; because the employee contributes to the annuity from their own income, taxes are deferred until the funds are eventually withdrawn, usually at retirement. Maximum contribution limits may exist, but provisions may also allow employees to "catch up" on contributions they failed to make in previous years.
Related Terms and Acronyms
- Tax Deferred Annuity (TDA) — Acronym, Important,
➥ More commonly known as a Tax Sheltered Annuity (TSA).
- A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
- Tax-sheltered — Definition,
- A savings or investment plan that offers significant tax savings.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.