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LAP EER COUNTY INTERMEDIATE SCHOOL DISTRICT TAX SHELTERED ANNUITY OR CUSTODIAL ACCOUNT PURCHASE AGREEMENT (COMPENSATION REDUCTION AGREEMENT)In order to make contributions to a tax sheltered annuity
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What is TAX SHELTERED ANNUITY OR CUSTODIAL ACCOUNT PURCHASE Form?

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A tax sheltered annuity, also known as a 403(b) plan, is a retirement savings plan that allows employees of certain non-profit organizations, schools, and hospitals to contribute pre-tax income to a retirement account.
Employees of eligible organizations, such as non-profits, schools, and hospitals, are required to file tax sheltered annuities if they choose to participate in the 403(b) retirement savings plan.
To fill out a tax sheltered annuity, employees must work with their employer to set up contributions through payroll deductions and select investment options offered by the plan administrator.
The purpose of a tax sheltered annuity is to allow employees to save for retirement on a tax-deferred basis, meaning they do not pay taxes on the contributions or earnings until they withdraw the funds in retirement.
Employees must report their contributions to a tax sheltered annuity on their annual tax return, including any matching contributions made by their employer.
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