403(b) TSA's were designed for people employed in the fields of education and healthcare. Employees of certain non-profit organizations are also eligible to contribute to a 403(b) TSA. Examples of eligible institutions include:

• Elementary Schools
• Colleges and Universities
• Private Colleges and Universities
• Correspondence Schools
• Hospitals
• Religious Organizations
• Charitable Institutions

• Secondary Schools
• Medical Schools
• Trade Schools
• Parochial Schools
• Adult Education Schools
• United Funds

It's an excellent idea for anybody who is eligible to contribute to a TSA. The reasons for participation are particularly strong for people in the following situations:

• Those who pay a substantial amount of income tax
• Members of a double-income family
• Those who are single with dependents
• Those investing or saving after tax money to fulfil long-term retirement goals
• Those who receive Federal and State Tax refunds
• Those who have adequate emergency funds

Yes, you may participate in any other retirement plan your employer may offer. However, because the contribution limits for TSA's are higher than those for retirement funding such as IRA's, financial professionals generally agree that it's best to maximize TSA contributions before starting an IRA or Roth IRA.

• Income
• Contribution
• Taxable Income
• Less Taxes
• After-tax Income
• Less Contributions
• Net Spendable Income
• TSA Advantage

• Without TSA
• $40,000
• $4,800
• $40,000
• $11,000
• $28,000
• $4,800
• $2,400

• With TSA
• $40,000
• $4,800
• $35,000
• $9,856
• $30,144
• $4,800
• $25,344
• +$1,344

If you want to maximize the growth of your retirement fund, you can add the tax savings you realize with a TSA to your regular TSA contributions. You'd still have as much take-home income as you would contributing less to a taxable account, but the difference in accumulation would be dramatic.

• Years of Teaching
• Marital Status
• Selected Option
• Top Salary
• Current STRS Income
• Income Deficit

• 34
• Married
• 7
• $69,500.00
• $50,496.00
• $19,004.00
• (38% income loss)

• Tax Sheltered Annuity (value)
• Income from TSA
• Income from STRS & TSA

• $422,321
• $25,396**
• $75,892

• ** TSA Income: This is illustrated from the Guaranteed values of your TSA and will pay out according to the Life Expectancy Income Option(LEIO). This annual income will increase by at least four percent per year.