Qualified

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Qualified

Describing any investment vehicle eligible for favorable tax treatment. In general, the personal income placed in a qualified vehicle is exempt from taxation until withdrawal. This increases the return on investment of that income. Common qualified vehicles include retirement plans and education trusts.
References in periodicals archive ?
The rules for IRAs are similar to those for other tax qualified retirement plans: You may take withdrawals, without penalty, after age 59 1/2; you must start withdrawals after age 70 1/2.
If the contract is tax qualified, generally all payments and/or withdrawals are treated as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10 percent federal tax penalty.
a law firm specializing in the field of tax qualified retirement plans, has signed a long-term lease agreement to occupy approximately 9,592 square feet of space.
If clients are using the annuity to fund any tax qualified retirement account (IRA), they must be advised that tax deferral is available with any investment vehicle and not unique to the annuity.