What Is the Difference Between a Qualified and Nonqualified Annuity?

Chris-Magnussen-23-What is the difference between a qualified and non-qualified annuity

Christopher Magnussen explains that qualified annuities are taxed as ordinary income upon distribution, while non-qualified annuities are only taxed on the gains, similar to a brokerage account.
Video Transcript
A qualified annuity or one from a retirement account like a 401(k) or an IRA. That would be taxed as if it was ordinary income in the year it was distributed. For those that are working with non-qualified annuities, those that are funded from checking account or savings account, those are taxed just like a brokerage account would be. And that would be taxed on the gains alone.