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What is a Tax Sheltered Annuity / Tax Deferred Account (TSA/TDA)?

April 26, 2017account Annuity sheltered tax TDA tsa

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What is a Tax Sheltered Annuity / Tax Deferred Account (TSA/TDA)?

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TSA/TDA is a supplemental voluntary retirement savings account as allowed by the provisions of the Internal Revenue Service Code (IRC) Section 403(b). A TDA allows an employee to set aside money tax-free in addition to the Teacher Retirement System (TRS) or Optional Retirement Program (ORP) set percentage amount. The TDA participant determines a monthly dollar amount to defer from their gross salary, within IRS limits, and the company from TWU’s authorized list to whom TWU sends the money for your account.