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Annuitieswww.BestAnnuityPro.com |
A Non Qualified Annuity for Your Investment PortfolioA non qualified annuity is an annual contract that you buy individually verses an employee-sponsored qualified retirement plan. A non qualified annuity offers the benefits of tax deferred earnings and the opportunity to receive this additional stream of income when you retire. The annuity contract, also know as standalone annuities, do not have a limit on contributions. You may add as much money to your account as you choose, either in monthly increments or as one lump sum. In addition, you are allowed use any source of monies to invest in your non qualified annuity. Whether it's a gift or an inheritance, you may invest as much as you like. Another plus to the non qualified annuity is that you don't have to being taking money by 70 1/2, giving you even more control over your financial planning. With a traditional IRA and many qualified retirement plans, the federal government requires you to begin withdrawing at age 70 1/2. Some states do not have an age requirement for withdrawing from your non qualified annuity. A non qualified annuity can be used to supplement the amount that you are putting into an employee-sponsored plan. For the self-employed a non qualified annuity is an excellent option that you can use as a secondary source for retirement income. Your financial advisor will most likely suggest that you make the maximum contribution to your employee-sponsored plan first, before investing in a non qualified annuity. Using non qualified annuities is a way to diversify your retirement portfolio. You may use your non qualified annuity to place money into various types of equity portfolios. Putting money into a variable non-qualified annuity presents an opportunity for your annuity income to exceed inflation. Contributions to non qualified annuities are made with post-tax dollars. When you take money out of a non-qualified plan, you don't owe tax on the portion of the withdrawal that is considered return of principal because it has already been paid. The important aspects of the non qualified annuity are that they allow for tax deferred earnings, there are no contribution limits, the investment income may come from any source, and the requirements for withdrawal are more flexible than than of a traditional IRA. As of 2005, the US has over $1 trillion in assets that are growing in annuities. By the year 2020, nearly 17% of the population will be over the age of 65. More and more people prefer the control and flexibility that the non qualified annuity offers. |
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