Put simply, the basic definition of a tax sheltered annuity is the system in which you pay into a retirement plan via your employer.
In most cases, tax sheltered annuities offer the added bonus of employer contributions as well.
Deferring taxes on the amount you invest into your retirement plan is a huge benefit of tax sheltered annuities.
Don't forget that if you have a lump sum of money, and you want to put it away for future use, an annuity can offer tax-sheltered growth.
A tax sheltered annuity, or a 403(b) plan, is a retirement plan available to employees working for specific types of employers.