A type of annuity offered outside of a tax-favored employer-sponsored retirement plan to which contributions are made with after-tax dollars. Taxes on earnings and interest are deferred until withdrawal or when annuity payments begin, usually at retirement.
An ANNUITY that has been funded with money that was previously taxed in the same year that the funds are to be deposited.
An annuity contract you buy individually rather than as part of an employer-sponsored qualified retirement plan. The premium is paid with after-tax dollars.
An annuity that is first subject to taxation.
"Non-qualified" refers to the fact that the particular annuity is not part of a qualified retirement plan or IRA and is purchased with after-tax dollars. In contrast, a "qualified" annuity is part of an employee benefit plan that has met certain requirements under the Internal Revenue Code, and is purchased with pre-tax dollars.
An annuity contract you buy individually rather than as part of an employer-sponsored qualified retirement plan. You pay the premium with post-tax dollars. With a deferred nonqualified annuity, your principal grows tax-deferred.
A tax-deferred annuity generally purchased by individuals with after-tax dollars, rather than as part of a tax qualified retirement plan such as an IRA.