Should you use Qualified or Non-Qualified funds to buy your annuity?

When you use non-qualified money, your interest is paid to you over the duration of the annuity. This can be a big benefit because it disperses your tax burden. When you use qualified money, all of the income you receive from your annuity becomes taxable. However, after the first calendar year you no longer need to include the amount of money in your annuity in your required minimum distribution (RMD) calculations.