Dear Crowinghen: There are many good reasons to use TSA retirement accounts - In a workplace that offers them (public school system or non-profit) you make pre-tax payroll deductions (like 401k plans), so you reduce your taxable income for that year; the funds grow tax-deferred (like 401k & IRA) until you draw funds out (after age 59 1/2 to avoid penalty from IRS); meanwhile in a variable annuity plan you are able to allocate among investment accounts that may include mutual fund-like investments in stock, bond, international stocks, indexes, or even a fixed interest fund which has guarantees! Some TSA's offer free, unlimited transfers among the accounts. As an "insurance" product a TSA usually offers some kind of guaranteed payoff to a beneficiary in the event of the premature death of the account owner - like a guarantee to pay out at least the amount that was contributed, regardless of the account value at the time of death (a handy feature when invested in aggressive stocks during periods of market volativity).
In addition to the option to convert this annuity into a guaranteed "income stream" during retirement, you may also opt to make only occasional partial withdrawals. There could be other benefits, too. Why don't you get a complete explanation from the TSA provider? Good luck. PP