qualified plan

(redirected from Qualified Annuities)

Qualified Plan

An annuity that one buys along with one's employer. That is, the annuitant and his/her employer both make tax-deferred contributions to the plan for a certain period, with withdrawals coming upon retirement. If the annuitant begins withdrawals before a certain age, withdrawal penalties apply. One may continue to make contributions until a certain age, usually around 65.

qualified plan

An employer-sponsored tax-deferred employee benefit plan that meets the standards of the Internal Revenue Code of 1954 and that qualifies for favorable tax treatment. Contributions by an employer and an employee accumulate without being taxed until payouts are made at the employee's retirement or termination.
References in periodicals archive ?
This IRS guidance extends to owners of non-qualified annuities the same tax treatment to people receiving annuity payments from their qualified annuities," said Laurie Lewis, ACLI Vice President & and Chief Counsel, Federal Taxes.
qualified annuities, penalties on premature distributions, and higher discrimination and participation requirements) have restricted not only the benefits of a qualified plan, but plan administration as well.
Qualified annuities are purchased with pretax dollars through retirement plans such as those under Internal Revenue Code section 401(k) of section 403(b).
Qualified annuities are subject to all laws governing IRAs, including but not limited to, age and contribution limits, early and late IRS withdrawal penalties and required minimum distributions.
NASD found that American Express had failed to address these issues adequately when it trained representatives and that certain disclosure documents omitted material facts regarding qualified annuities.
Although they appear under a variety of titles, the common thread for qualified annuities is that, within narrow limits prescribed by the Code, an investment in the contract is currently deductible.
While non-qualified annuities offer the added benefit of tax deferral, in the case of qualified annuities, the tax deferral is provided by the retirement plan itself.
Nancy Steeber, AFG's Senior Vice President, Annuity Services, says, "American Fidelity is pleased with the VPAS(R) Life system and the opportunity to work jointly with McCamish Systems to develop support for qualified annuities.
Variable and qualified annuities are complimentary businesses for the operation.
The Denver-based company also administers tax- qualified annuities for public/non-profit pension customers.
AICA was formed to facilitate the sale of non-qualified and tax qualified annuities through banks and broker dealer channels.