Generally, a 403(b) plan is a retirement planning program
whereby a public school or tax-exempt 501(c)(3) organization
(including churches) makes contributions for their employees (and
certain ministers) to specific types of funding arrangements (i.e.,
annuity contracts, custodial accounts, or retirement income
accounts [which are limited to church employees and ministers]).
Historically, 403(b) plans utilized annuities as their funding
vehicles. Thus, 403(b) plans are often referred to as tax sheltered
annuities or TSA plans.
In 2007, the Internal Revenue Service ("IRS")
published final regulations applicable to 403(b) programs. These
regulations required that a 403(b) program be operated
"pursuant to a written plan which, in both form and operation,
satisfies the requirements of [Code] Section 403(b) and these
regulations." In addition, the regulations contained rules
governing the limits on contributions, the timing of distributions,
nondiscrimination and
