Tax Sheltered Annuities
Delta College offers all full-time and part-time employees (excluding student workers) the opportunity to participate in a 403(b) Tax Sheltered Annuity Program. A tax sheltered annuity (TSA) is an instrument that allows you to supplement your retirement income by deferring a portion of your current salary. Monies contributed through payroll deduction to a TSA are invested in investment instruments of the employee's choice (e.g., time certificates, stock, bonds, etc.). TSA contributions are not subject to Federal, State, or Local income tax in the year of deferral. (They are subject to FICA and Medicare tax.) They are taxed when distributed from the TSA account.
- Select and contact one or more of approved Tax Sheltered Annuity vendors.
- Establish an account with one of the approved vendors by completing the paperwork provided by the company representative.
- Complete the Delta College 403(b) Retirement Plan Salary Reduction Agreement for Elective Deferral.
- Submit the completed Delta College 403(b) Retirement Plan Salary Reduction Agreement for Elective Deferral to the Finance Office, B118.
- Allow up to 2 payroll periods for your Tax Sheltered Annuity deductions to begin.
- You may initiate or change your tax deferred annuity at any time during the year. Use the Delta College 403(b) Retirement Plan Salary Reduction Agreement for Elective Deferral listed above to make any changes to existing contracts. Contract changes are limited to four times per year per contract.