What Is A 403 B Tax Deferred Annuity?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, California403(b) is a section in the Internal Revenue Code that allows certain occupations to defer income for the purpose of retirement. An annuity is not the sole funding mechanism for a 403(b). Annuities are probably the most popular vehicle. If your employer can offer a 403(b) they will provide information about their program. Basically taxes are deferred during the accumulation phase and the payout in retirement is taxed as ordinary income.Answered on December 16, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! A 403b is a retirement plan that is set up for certain occupations, like school teachers, Ministers, and some tax exempt organizations. They can be funded by annuities, custodial mutual fund accounts, or a combination of both. The contributions can be made to an account pre-tax, and taxed upon withdrawal, or they can be in a Roth and taxes on contributions paid in result in tax free withdrawals. You will want to see which plan options are available to you, and speak with an adviser about what would work best for you. Thanks for asking!Answered on December 16, 2014flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
.JPG){kind=avatar}
