how does a tax sheltered annuity work 
a tax sheltered annuity is a type of retirement plan offered by certain organizations such as churches non profit organizations and public schools this plan works like other retirement plans employees can contribute a certain portion of their annual salaries up to a certain amount each year these contributions are made on a pre tax basis earnings grow tax free which means they aren t taxed until the plan owner begins making withdrawals during retirement can you take a loan from a 403 b plan you may be able to take a loan from your 403 b plan if your employer allows it keep in mind that plans aren t required to provide loans from tax sheltered annuities if you need to take a loan from your tsa check with your plan administrator about your rights and responsibilities 