How to Put Tax Deferred Money Into an Annuity

Tax-deferred money, such as 401k, 403b and Individual Retirement (IRA) accounts, are structured to help investors save money to supplement retirement income. These types of accounts are referred to as qualified plans. Annuities are investments sold by insurance companies that are inherently tax-deferred but may be either qualified or non-qualified. Non-qualified annuities use after-tax money and defer only the earnings. If there is an annuity investment that meets your investment objectives, you can transfer qualified tax-deferred assets into annuities without generating a taxable event.