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Therefore, the money put into the non-qualified annuity contract is not subject to taxes.

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In some cases, such as a Minor Beneficiary, Trust Beneficiary, Estate Beneficiary, Foreign Beneficiary, Plan Beneficiary, additional documents will be required. Annuities are classified into two basic types: tax-qualified and non-qualified,depending whether the annuity was an IRA or held in an employer-sponsored plan or was not in a tax-qualified arrangement.

Tax-qualified annuities, such as some IRAs, are generally funded with pre-tax dollars.

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