Contributions must be made through your employer. TSA contributions do not affect Social Security taxes or reported wages for Social Security. The liability for taxes on the deferred amount and any interest accrued is postponed until the money is taken as income usually at retirement time. This deferred taxable income plan should not be confused with tax exempt.
Adjunct faculty are eligible to participate.
Participation in a TSA program will reduce your taxes immediately. Every dollar you contribute to your TSA is not subject to ordinary income tax withholding. So, by participating in the plan you will generally pay less federal and state income tax. The example shown in the following table assumes a single employee with one withholding exemption. Monies contributed to a TSA account are intended for additional retirement income.