Tax-Deferred Annuities
Description | Account Fact Sheets
Description
Supplemental retirement plans provide a tax-deferred way to help build extra retirement assets.
- They are available to employees by an employer under a 403(b) tax-deferred annuity plan.
- Contribution limits vary by individual, but many people can contribute $16,500 or more in 2009 and 2010.
Withdrawals are generally subject to restrictions and a 10 percent penalty before age 59½. - Starting a supplemental retirement plan authorizes the employer to set aside a portion of your client's salary and place it in the allocation options selected. Because the contributions are in before-tax dollars, less taxable income is repayable to the IRS and less federal income taxes are owed. No taxes are due on earnings until they're taken as income.
Account Fact Sheets
Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
