TDA Options

I am employed by a nonprofit hospital and eligible for a tax-deferred (sheltered) annuity. At this time I am contributing to an annuity plan from a national insurance company.Where can I obtain reliable figures to compare bottom-line yields from other companies' TDA plans? Could I establish my retirement program with a Swiss insurance firm or bank?

Generally, tax-sheltered or deferred annuity plans are written for the group in which you participate. Thus, you would have limited choices for investment of your retirement funds.Your first source of information is the plan administrator at the hospital where you work. Most TDA plans offer from three to as many as nine options -- differing plans from which you can choose. Your plan administrator may have comparative information on other companies' plans. One of the responsibilities of an administrator or retirement plan committee is to evaluate plan offerings from insurance companies, mutual funds, and other institutions and select one or more for participants. Most TDA plans to do not permit individual participation outside of the approved options. You will probably not be permitted to establish your TDA plan with a Swiss insurance firm directly. You could, take a lump-sum payout, pay applicable taxes, and invest the after-tax dollars in a single-premium Swiss annuity that would likely offer mor e stability than an annuity denominated in US dollars.