What is the advantage of having a qualified annuity?

Qualified Annuity vs. Non-Qualified Annuity The best way to define a qualified annuity is to compare it to a non-qualified one. The biggest difference is that qualified annuities are funded with pre-tax money, while non-qualified annuities are purchased with after-tax money. read more

If this is the case, all distributions taken from qualified annuities are fully taxable as ordinary income because of the contribution deduction. All normal annuity distributions from non-qualified contracts consist of a combination of earnings and principal. read more

Periodic payment annuities can be either level premium, or flexible premium, in which the amount and frequency of each installment varies Immediate annuity One that is purchased with a single, lump-sum payment and provides income payments that start within one year from the date of purchase. read more