Financial Literacy Month
Term of the Day
NON-QUALIFIED ANNUITIES
Annuity contracts that are funded with already-taxed dollars. Because annuities are a tax-deferred insurance product, it’s the initial premium payment(s) in a contract from which the measure for gain is calculated. Generally, any taxable withdrawal from a non-qualified annuity taken before age 59 1/2 is subject to a 10% early withdrawal penalty, with some exceptions.
