I Have A Qualified Variable Annuity. What Is That Exactly? 
A qualified annuity differs from a non-qualified annuity , which is an annuity funded with after-tax dollars . While distributions -LRB- contributions to a qualified annuity are pre-tax -RRB- from a qualified annuity are taxed as income , distributions from a non-qualified annuity are not subject to income tax in their entirety . Qualified annuities are often set up by employers on behalf of their employees as part of a retirement plan . 