What is a TSA or 403(b) plan?
A TSA or section 403(b) plan are different names for the same thing—a retirement savings program that allows public school employees to save for retirement with payroll contributions. 403(b) savings options allow participants to designate their 403(b) contributions as before-tax or after-tax (Roth). Before-tax contributions reduce your taxable income and defer taxes on these contributions, along with any future earnings, until you withdraw the money. Roth contributions are after-tax, which means you pay taxes now on your contributions, but all qualified* withdrawals, including earnings, are tax-free. *For qualified withdrawals from the Roth TSA, the participant must be age 591/2 or older and have had the account for at least five years.