North Carolina Life Agent Practice Exam

In a 403(b) tax-sheltered annuity, the employee is typically considered the owner of the account. This type of retirement plan is designed for employees of public schools and certain tax-exempt organizations. When contributions are made to a 403(b) plan, they are pulled from the employee’s salary, which the employee controls. The employee has rights to make decisions about investment options and is the one who benefits from the tax advantages provided by the plan.

The employer's role is primarily to facilitate the plan, often by allowing payroll deductions for contributions, but they do not own the account themselves. The government regulates these plans to ensure compliance with tax laws, but they do not own or control the funds either. Similarly, while the insurance company may manage the annuity products that fund the 403(b), they do not hold ownership over the account. Ownership rests with the employee, who acts as the account holder and has access to the funds, subject to certain tax implications, usually upon retirement or separation from service.