The general responses are meant to be broad guidelines only. Please refer to the TRS Rules and Laws for specifics. TRS recommends that an employee contact his or her attorney, accountant, or CPA to determine the income tax consequences as well as legal rights under the plan. TRS cannot provide legal or tax advice.
TSA payments are in addition to the member's normal retirement contributions.
The main purpose of a tax-sheltered annuity is to defer tax liability on a portion of income until some future date. There are two. Second, an individual must be a member of TRS and work for a participating employer. The member must sign an amended employment contract allowing the employer to deduct a specified amount of income. A TRS member may be eligible to contribute larger amounts, but should consult a tax attorney, CPA, or accountant before doing so.