Abney Associates Ameriprise Financial Advisor - Annuities come in many different forms. There are immediate and deferred annuities, with both fixed and variable rates. However, whatever the type of annuity, all can be classified as either qualified or nonqualified annuities. And the distinction is easy.
Qualified annuities are used in connection with tax-advantaged retirement plans, such as defined benefit pension plans, Section 403( retirement plans (TSAs), or IRAs. Premiums for qualified annuities are generally paid with pretax dollars, as are any investments purchased for use in a qualified retirement plan.