Annuity taxes Flashcards

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1
Q

If an annuity is not going to be used for a tax advantaged retirement plan or an IRA, it would be considered a _____ annuity

A

Non qualified

If not tax advantaged plan or IRA

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2
Q

T/F: Qualified annuities are used in conjunction with tax advantaged retirement plans

A

True

Tax advantaged means:

  • Exempt from taxation
  • Tax defereed
  • Some other tax benefit
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3
Q

T/F: qualified annuities are used in conjucntion with a tax advantaged retirement plan

A

True

Examples:

  • defined benefit pension plans
  • Section 403b plans (TSA)
  • IRA
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4
Q

Which annuities (qualified, non-qualified) are used in conjunction with tax advantaged retirement plans?

A

Qualified annuities

>used in tax advantaged retirement plan

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