• A qualifying annuity is an annuity approved by the IRS for use in an IRA or a qualified retirement plan, similar to other types of annuities.
  • A qualifying annuity can be variable, fixed or indexed.
  • Annuity withdrawals before the age of 59.5 are subject to a 10% penalty.
  • However, since the non-qualifying annuity is purchased with after-tax dollars, only profits are penalized.