What Is A Non Qualified Immediate Annuity? 
When you are looking at starting an annuity there are two types of money that can be used . There is qualified , money that you have n't paid taxes on like a 401k that was funded with pre-tax dollars . When you start taking distributions from an annuity funded with qualified money , you will have to pay takes on the principal and the interest that was earned . With non-qualified money , money that you already paid taxes on like money from a saving or checking account , when you start taking distribution you will only pay taxed on the interest that was earned . Now there are also two different types of annuities deferred and immediate . A deferred means that there is a waited period before you can start taking distributions or immediate meaning that once that annuity is in affect you can immediately start taking distributions . So a non qualified immediate annuity means that the money being used to fund it has already been taxed and once the annuity is approved you can immediately start taking an income . When looking at annuities make sure that you shop around with a broker that represent multiple annuities . You may want to look at some that offer an income bonus and or a life time income . 