Series 6 - Investment Company And Variable Contracts Products Representative Exam

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All of the following statements about nonqualified annuities are true EXCEPT:

They are funded with pre-tax dollars
A
The earnings on the annuity grow tax-deferred
B
Only the earnings are taxed at distribution
C
They are an insurance contract designed to provide retirement income
D

Explanations

Nonqualified annuities are funded with after-tax dollars.

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