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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.
nonqualifying annuity
See: Nonqualified annuity.


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