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Tax deferred annuity (tda)

Retirement vehicle permitted under section 403 (b) plan of the U.S. Internal Revenue Code for employees of a public school system or a qualified charitable organi­zation. Under such an agreement, the maximum annual contribution is $4500. Cash values and dividends accrue but are not taxed until the annuitant actually receives benefits. At that time, the annuitant is taxed only on the amount that exceeds the investment in the annuity.


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