What Are Tax Sheltered Annuities? 
Qualified annuities generally refer to tax deferred annuities is a qualified plan like ab ERISA -LRB- Employee Retirement Income Security Act of 1974 -LRB- qualified plan such as a 410 -LRB- k -RRB- . By inserting tax deferred annuities into a qualified plan contribution re-characterizes the basis as taxable during distributions , i.e. the entire annuity distributions are taxable as ordinary income . 