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qualifying annuity

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Qualifying annuity
An annuity allowable as investment for a qualified plan or trust.
qualifying annuity
An annuity approved by the Internal Revenue Service in which the contributions may be deducted from taxable income. The effect of contributing to a qualifying annuity is deferred taxes on the contributions from the time the contributions are made to the time any withdrawals are made. Qualifying annuities are used for individual retirement accounts, Keogh plans, and profit-sharing plans. Compare nonqualifying annuity.


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