nonqualified

[non-kwol-uh-fahyd]

adjective

1. unqualified.

2. not meeting the requirements in the pertinent provisions of the applicable regulations, as for tax or pension plan considerations.

Word History and Origins

Origin of nonqualified¹

non- + qualified

Example Sentences

The funds sent to you can go in any type of “nonqualified” or “taxable” account.

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Nonqualified accounts include common bank accounts, brokerage accounts, and some tax deferred accounts for which you get no tax deduction upon contributions like certain annuity contracts.

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So, you could distribute $30,000 to yourself, put that in a nonqualified account like your checking and then convert $20,000 to a Roth IRA.

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“The combined ordinary taxable income from the Roth conversion, taxable interest, and nonqualified dividends of $47,500 is completely wiped out by the total available deductions,” they said.

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An owner would incur a $2,500 monthly penalty if the ADU is rented to a nonqualified tenant ahead of time.

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