nonqualifying annuity

nonqualifying annuity definition - business

nonqualifying annuity

An annuity not approved by the Internal Revenue Service for tax-deferred pension contributions. A nonqualifying annuity permits the investor to defer taxes on income earned by the annuity, but not to reduce taxable income for contributions made to the annuity. Compare qualifying annuity. See also rabbi trust.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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