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Tax Sheltered Annuity (403b plan)

Tax Sheltered Annuity (403b plan). By: Mahonri Latu 10/24/13 Pd : 2. Definition . A type of retirement savings plan for employees of certain public education organizations, non-profit organizations, cooperative hospital service organization and self-employed ministers. . Pros and Cons.

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Tax Sheltered Annuity (403b plan)

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  1. Tax Sheltered Annuity (403b plan) By: MahonriLatu 10/24/13 Pd: 2

  2. Definition • A type of retirement savings plan for employees of certain public education organizations, non-profit organizations, cooperative hospital service organization and self-employed ministers.

  3. Pros and Cons • After he/she is over 50 years of age, they can have catch up contribution with the total being $5,500. • Once you begin using money from this retirement plan they are able to tax you from what you save. • This plan has more limits than that of the 401(k) plan • Maximum capacity of a contribution from both the employer and employee is $50,000.

  4. A conservative investor would most likely use this type of investment because it is saving money from what they’re earning right now. With maybe an average investor that would sometime choose this route or choose not to use this type of investment.

  5. There is only one way to make money by contributing a sum of money into this retirement plan. • Also, there is a maximum amount that an employee could chip in with a type of way to “catch up”. If the pay from previous years hadn’t reached it’s maximum capacity for putting into this savings account.

  6. This type of plan would be bit better in the bad times of our economy. Mainly because you could grab the money to which you’d use and still have plenty of money stored away. • The employee begins by investing $17,000 a year.

  7. Organizations • Taxed shelter Annuities are for employees working in certain public education organizations, non-profit organizations, cooperative hospital service organization and self-employed ministers,

  8. http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-403(b)-Tax-Sheltered-Annuity-Planshttp://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-403(b)-Tax-Sheltered-Annuity-Plans • http://www.investopedia.com/terms/t/taxshelteredannuity.asp • http://www.uwsa.edu/ohrwd/benefits/ret/tsa/

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