Qualified Annuity

Filed Under »
Dictionary Says

Definition of 'Qualified Annuity'

An financial product that accepts and grows funds, and is funded with pre-tax dollars. "Qualified" is a descriptor given by the Internal Revenue Service (IRS) to indicate that the qualified annuity may be eligible for tax deduction. When a distribution is made, it is subject to income tax.
Investopedia Says

Investopedia explains 'Qualified Annuity'

A qualified annuity differs from a non-qualified annuity, which is an annuity funded with after-tax dollars. While distributions from a qualified annuity are taxed as income, distributions from a non-qualified annuity are not subject to income tax in their entirety. Qualified annuities are often set up by employers on behalf of their employees as part of a retirement plan.

Related Video for 'Qualified Annuity'

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Annuity

    A financial ...

  2. Qualified Retirement Plan

    A plan that ...

  3. Pension Plan

    A type of ...

  4. Internal Revenue Service - IRS

    A United States ...

  5. Income Tax

    A tax that ...

  6. 403(b) Plan

    A retirement ...

  7. Annuitant

    1. A person who ...

  8. Period Certain

    An ...

  9. Immediate Payment Annuity

    An annuity ...

  10. Equivalent Annual Annuity Approach - EAA

    One of two ...

Articles Of Interest

  1. Calculating The Present And Future Value Of Annuities

    At some point in your life you will have to deal with a series of fixed payments over time, so it pays to know how to calculate them.

  2. Passing The Buck: The Hidden Costs Of Annuities

    These may look like good retirement vehicles, but beware of the fees buried in the fine print.

  3. An Overview Of Annuities

    These contracts provide a guaranteed income stream. Learn how they work and their benefits.

  4. Explaining Types Of Fixed Annuities

    Learn about this popular retirement tool, its pros and cons and how annuities work to create a guaranteed regular stream of retirement income.

  5. Watch Your Back In The Annuity Game

    Find out how to get the upper hand when dealing with this payout challenge.

  6. 5 Ways To Fund Your Retirement

    Generating income without going to work tends to be a murky concept. Find out how it works.

  7. Strategies For Withdrawing Retirement Income

    You've accumulated the wealth you need to retire, but how will you distribute it? We'll lay out some options.

  8. 5 Ways To Stretch Your Retirement Budget

    Living comfortably can be easy if you follow a simple plan.

  9. Immediate Annuities: More Income and Lower Taxes

    These instruments may shed their bad rap to bring you a hefty tax break.

  10. Weave Your Own Retirement Safety Net

    Build savings to support yourself in case pension plans and Social Security fall through.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center