What Are Tax Sheltered Annuities? 
Tax sheltered annuities -LRB- TSA 's -RRB- are a type of retirement plan that allows employees of eligible public educational organizations or tax exempt organizations to contribute part of their pre-taxed salary to the plan with tax deferred growth . Employers are also allowed to contribute to a tax sheltered annuity for the employee . Authorized by IRS Section 403 -LRB- b -RRB- , TSA 's are also called 403 -LRB- b -RRB- plans . 