What Are Qualified Annuities? 
Qualified retirement plans like 401 -LRB- k -RRB- s -LRB- under ERISA -RRB- may use tax deferred annuities as a funding product . Using tax deferred annuities in a qualified plan subjects the annuity to the rules of RMD distribution and the re-characterization of basis as taxable as ordinary income at the plan participants effective tax bracket rate . 