Date of Award
6-1967
Document Type
Thesis
Degree Name
Master of Science (MS)
Abstract
Is a tax sheltered annuity a better investment for qualified teachers than endowment insurance?
An analysis was made of Section 403 (b) of the Internal Revenue Code of 1954, which regulates the taxability of annuities purchased by educational institutions for their teachers
After determining that teachers qualify under Section 403 (b) for the purchase of a "tax sheltered'' annuity, a comparison of a tax sheltered annuity and an endowment insurance contract was made to determine the better investment
The tax sheltered annuity showed a greater growth rate over the investment period. The dollars that are invested in the annuity have a greater purchasing power because they are not currently taxed and the tax dollars presently saved are used as partial payment of the annuity contract. The endowment insurance investment dollars were after tax dollars and the cost of the endowment contract to the teacher was, therefore, greater
The study indicated that there is an investment advantage in the purchase of a tax sheltered annuity
Recommended Citation
Olsberg, Michael D., "The Advantage Of a Tax Sheltered Annuity For Teachers" (1967). Theses and Dissertations. 6235.
https://commons.und.edu/theses/6235