Definition of 'Non-Qualifying Investment'
There are a few different types of non-qualified investments. One type is a traditional IRA. Traditional IRAs are not qualified investments because they are funded with pre-tax dollars. This means that the money you contribute to a traditional IRA is not taxed when you contribute it, but it is taxed when you withdraw it.
Another type of non-qualified investment is a taxable brokerage account. Taxable brokerage accounts are not qualified investments because they are not subject to the same restrictions as IRAs. This means that you can invest in any type of security in a taxable brokerage account, and you can withdraw your money at any time without penalty.
Finally, there are a few other types of non-qualified investments, such as annuities, life insurance policies, and real estate. These investments are not qualified investments because they do not meet the requirements of a qualified investment.
It is important to understand the difference between qualified and non-qualified investments before you make any investment decisions. If you are not sure whether an investment is qualified or not, you should consult with a financial advisor.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.