Qualified Vs Non Qualified Annuities

You have been working for years and years and you are looking forward to retire soon. You are saving money for your retirement and you have enough money to live a comfortable life after retirement. You are looking forward to enjoy your retired life without any worries. But you are not lucky enough to get a good pension plan from your employer, as they don’t provide a good pension plan.

You are worried about the future of your retirement, as you are not getting any pension plan from your employer, so you need to take care of your retirement. You can opt for a private pension plan or a public pension plan. You need to check out these two options to decide which one will be the best for you.

Qualified Annuity

These are private pension plans which are available to people who have some income or some other assets. If you have a good financial status, then you can opt for a private pension plan, but if you have some other assets, then you can also opt for a public pension plan. There are some private pension plans which are regulated by the government. These pension plans are also known as tax-free pension plans. The main advantage of this kind of pension plan is that it is completely tax-free. But these plans are not suitable for those who don’t have any financial status.

Non qualified annuity

The second option is a non qualified annuity. In this pension plan, you will have to pay a certain amount of money each month to the pension fund. This amount will be used to pay the benefits to the retired people. This plan is also regulated by the government and it is completely tax-free. But if you don’t have any other assets, then you can’t get any benefit from this plan.

Conclusion:

So, these are the two options available for you to opt for your retirement plan. You need to check out these options and decide which one is the best for you.