Definitions for "Tax-Sheltered Annuity"
A 403(b) plan that invests in an annuity. See 403(b) plan.
Under Section 403 (b) of the Internal Revenue Code employees of a public school system or a qualified charitable organization are allowed to contribute up to $9,500 into a retirement plan. The accrual of dividends and cash values is not taxable until the annuitant actually receives the benefits, and only on the amount that exceeds the investment in the annuity.
(See "Section 403(b) Plan.")