In a 403(b) tax-sheltered annuity, who is usually recognized as the owner?

In a 403(b) tax-sheltered annuity, the employee is recognized as the owner of the account. This type of plan is specifically designed for employees of non-profit organizations, schools, and certain governmental entities, allowing them to save for retirement on a tax-advantaged basis.

The employee has the control and rights associated with the annuity, including decisions regarding contributions, investment choices, and withdrawals. This ownership structure aligns with the goal of empowering employees to manage their retirement savings effectively.

Understanding the ownership of a 403(b) can also clarify the roles of other parties involved. For instance, while the employer may sponsor the plan and facilitate payroll deductions, the employer does not have ownership rights over the funds. Similarly, the financial advisor may provide guidance but does not own the account. The insurance company administers the annuity but is not recognized as the owner either. Thus, the correct answer highlights the employee's central role in managing their retirement savings within a 403(b) plan.