What's the difference between Qualified and Non-Qualified?

{"subtitle":"These terms have to do with the tax treatment of your annuity.","answer":"'Qualified' often refers to before-tax money, and 'Non-Qualified' often refers to after-tax money. If you buy your annuity with after-tax dollars (e.g. checkings/savings), it'll be a 'Non-Qualified' account. If you use pre-tax dollars (e.g. a 401(k) or IRA), it'll be a 'Qualified' account.","example":"\Example:\n \u003cstyle\u003e\n td, th {\n border: 1px solid #DDDDDD;\n text-align:left;\n padding: 8px;\n }\n table {\n table-layout: fixed\n }\n \u003c/style\u003e\n \u003ctable\u003e\n \u003ctr\u003e\n \u003cth\u003e\u003c/th\u003e\n \u003cth\u003eQualified Annuity\u003c/th\u003e\n \u003cth\u003eNon-Qualified Annuity\u003c/th\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003ePrincipal/Payment\u003c/td\u003e\n \u003ctd\u003eBefore-taxed funds\u003c/td\u003e\n \u003ctd\u003eAfter-tax funds\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eTax Treatment\u003c/td\u003e\n \u003ctd\u003eTax later\u003c/td\u003e\n \u003ctd\u003eTax only on earnings\u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd\u003eCommon Source\u003c/td\u003e\n \u003ctd\u003e401(k), 403(b), 457, IRA Pension\u003c/td\u003e\n \u003ctd\u003eSavings, cash, stocks, bonds, mutual funds\u003c/td\u003e\n \u003c/tr\u003e\n \u003c/table\u003e","reminder":"\Reminder: Qualified funds can merge together, and Non-qualified funds can merge together, but Qualified funds and Non-Qualified funds cannot be mixed.