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qualifying investment

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Financial Dictionary

Qualifying Investment

An investment purchased with pretax income. Money invested in a qualifying investment trust, annuity or plan is exempt from income taxes until it is withdrawn. These sorts of investments are tax-deferred, because the money invested in them is taxed at withdrawal only.

Investopedia Commentary

Some types of investments that may qualify for tax-deferred status are investment plans, annuities, stocks, bonds, IRAs, RRSPs and certain types of trusts.

Related Links

Exploring Types Of Fixed Annuities
Tough Times...Should You Disturb Your Qualified Plan's Assets?
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The 401(k) and Qualified Plans Tutorial

See also: Annuity, Individual Retirement Account - IRA, Qualified Plans, Qualified Retirement Plan, Registered Retirement Savings Plan - RRSP, Tax Deferred, Tax Exempt, Trust

Also spelled: qualified investment

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