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nonqualifying annuity

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Nonqualifying annuity
An annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal.
nonqualifying annuity
An annuity not approved by the Internal Revenue Service for tax-deferred pension contributions. A nonqualifying annuity permits the investor to defer taxes on income earned by the annuity but not to reduce taxable income for contributions made to the annuity. Compare qualifying annuity.
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