Definition
A qualified retirement plan that is invested in annuities. Often referred to as a ‘an annuity plan’ described in IRC § 403(a),
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Additional Helpful Information
If an annuity contract is purchased by an employer for an employee under a qualified annuity retirement plan that satisfies the deduction rules that apply to qualified plans, the amount actually distributed to any distributee under the contract is taxable to the distributee in the year that the distribution occurs. This rule applies whether or not the employer deducts the amounts paid for the contract under the plan.
