nonqualified

American  

[non-kwol-uh-fahyd] / nɒnˈkwɒl əˌfaɪd /

adjective

1. unqualified.

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

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Etymology

Origin of nonqualified

non- + qualified

Example Sentences

There is a lifetime limit of $35,000 for each Roth IRA beneficiary without incurring the required 10% penalty for nonqualified withdrawals or incurring a tax hit on the withdrawal.

From MarketWatch

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

From MarketWatch

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.

From MarketWatch

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.

From MarketWatch

“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.

From MarketWatch