What is the definition of Non-Qualified Annuity?
A Non-Qualified Annuity is an annuity other than a tax-sheltered annuity that meets the qualification requirements under Section 403(b) of the Internal Revenue Code. Non-Qualified annuities generally provides tax-deferred growth in earnings and are generally purchased by individuals with after-tax dollars, rather than pre-tax dollars as is the case with a tax qualified retirement plan such as a TSA.
