3.96 L. Tax-Sheltered Annuities (IRC Sec. 403(b))

School district employees and some other educational employees may purchase tax-sheltered annuities and have the cost tax-deferred under Section 403(b) of the Internal Revenue Code. Contributions to deferred compensation plans, such as an IRC section 403(b) plan A retirement plan that functions like a defined contribution plan and is similar to a 401(k) plan, but is offered by non-profit organizations, such as universities and some charitable organizations, rather than corporations. If you work for a school district or a public hospital, you may be familiar with an Internal Revenue Code Section 403(b) tax-deferred annuity., are included as IMRF earnings and must be reported to IMRF. This is true regardless of the source of the contributions, whether paid via a cafeteria plan, or whether paid by the employer in lieu of health insurance.