It is a tax-deferred annuity a 403 (b)?
These are not really the same animals. Section 403 (b) plan is a retirement plan established by schools, such as universities, their teachers / professors. I liken it to a qualified plan under Section 401 (a), sponsored by an employer of companies (perhaps with fewer investment choices). Many of these plans may offer annuities as investments, but it probably will offer a total duration of investments as IRA do. A tax-deferred annuity usually issued by an insurance company, and can be purchased by anyone. The funds are deposited in insurance company, the investor chooses among the available investments, and rent increases (or decreases) in value based on market value of investments chosen. Most times there is no specified retirement date, for example 10 years from now, 65 years of age, or some other option. Unless the company offers insurance an election to suspend indefinitely the date of retirement, some measures should be taken on or before that date. The usual choices are: 1) take a lump sum, 2) the value of an annuity account rather a set period or for a lifetime or a period of common life, or 3) exchange the annuity for another that could be better for future growth. In any case, any increase in the value of the income tax deferred until some form of payment occurs.
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