The Tax Sheltered Account/403 (b) plan is a voluntary savings program through payroll deduction, like the credit union. However, with the 403 (b) program; you gain the TSA Advantage -- Tax Deferral. Since, you are saving with pre-tax dollars, the federal government is in effect subsidizing your retirement program.

Participants must select from one of the approved TSA/ 403 (b) investment options available through their employer. Typically, employees have a choice of fixed annuities, which have no market risk and variable products, like mutual funds that have market risk. Employees should consider their investment options carefully. They need to consider their needs, risk tolerance and objectives, prior to investing.

TSA

Bank

Effective January 1, 2009 participants may defer  up to $16,500 per year. Participants who are age 50 or over are eligible to defer an additional $5,500 per year. If  the employee has 15 or more years of service with their current employer a catch up provision, permitting a deferral of an additional $3,000 per year for up to 5 years, may be utilized.   
Please click here for more details of the changes.  
TSA Contributions Calendar