Tennessee Insurance Practice Exam 2026 – All-in-One Resource for Exam Success!

The employee is typically regarded as the owner of a 403(b) tax-sheltered annuity. In a 403(b) plan, employees of public schools and certain tax-exempt organizations can contribute to retirement savings on a pre-tax basis. Although the employer may facilitate and sometimes contribute to the plan, the employee retains the rights and ownership related to the account and any benefits accrued. This ownership means that the employee controls the investment choices within the 403(b), as well as the distribution of funds upon retirement or withdrawal.

The employer serves primarily as a sponsor and may provide matching contributions, but they do not own the account. The insurance company serves as the provider of the annuity, administering the plan, but ownership rights remain with the employee. The federal government regulates these plans and provides the tax advantages associated with them, but it does not have ownership over individual accounts. Understanding this structure helps clarify the role and responsibilities of employees versus other parties involved in a 403(b) plan.