Annuity taxes

Question 1

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

Answer 1

Non qualified

If not tax advantaged plan or IRA

Question 2

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

Answer 2

True

Tax advantaged means:

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

Question 3

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

Answer 3

True

Examples:

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

Question 4

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

Answer 4

Qualified annuities

>used in tax advantaged retirement plan