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	<title>New answer on: What Is The Difference Between Qualified And Nonqualified Annuities?</title>

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		<title>By: David Racich</title>

		<link>http://insurancelibrary.com/annuities/what-is-the-difference-between-qualified-and-nonqualified-annuities</link>

		<dc:creator>David Racich</dc:creator>

		<pubDate>Thu, 13 Jun 2013 14:02:17 +0000</pubDate>

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		<description><![CDATA[An annuity is an insurance product with features differing crediting methods using interest rates, index returns or separate sub account performance. Annuities are non-qualified by design and are highlighted as a product because the earrings accumulate tax deferred and the gains are taxed as ordinary income, but your basis is returned to you tax free.  If you purchase an annuity for a qualified plan like an IRA, you can deduct the contribution to the plan, it accumulates tax deferred and is distributed as ordinary income, including basis. So your effective tax bracket is one of the determining factors in whether you qualify or non-qualify your annuity.
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