TSA (403b), IRA & Roth IRA
What is a TSA or 403(b) plan?
A 403(b) tax-sheltered annuity (TSA) plan is a retirement plan, similar to a 401(k) plan, offered by public schools and certain 501(c)(3) tax-exempt organizations. An individual may only obtain a 403(b) annuity under an employer’s TSA plan.
The Advantages of a Tax Sheltered Annuity
- Convenient Payroll contributions
- Pre-tax dollars = immediate tax savings!
- Tax deferred growth!
- Annual contribution limits are much higher than an IRA ($17,500 - and possibly more)
- LOAN PROVISIONS
Three companies below have this in common:
1. Your principal is guaranteed
2. Minimum guaranteed interest is 1.0%
3. All are authorized with Santa Rosa School Board for payroll deduction
Midland National
8% Premium Bonus (9% in start plan in August 2013!)
(Bonus added to all contributions in first seven years of the account. Includes Payroll, Transfers and Rollovers)
Ability to link account to Stock index and share in gains without risk of losing principal due to market downturns.
Great American
Current new money rate is 4.2% !
ING
Current rate is 2.5%
Has shortest surrender charge period - 5 year rolling