What is not a Qualified Action?
Now look at the list of actions that are not considered to be qualified actions on the handout Annuity Transactions (PDF).
Non-qualified actions are generally actions that do not change the annuity contract. Examples of non-qualified actions include:
- A payment amount change based on language spelled out in the terms of the contract.
- The owner reports to the annuity issuer that a beneficiary has died.
Note: If, in the process of reporting the death of a beneficiary, a new beneficiary is added the action of naming the new beneficiary is a qualified action.
- DHS is designated as the preferred remainder beneficiary. This is the only time a change in beneficiary is not considered a qualified action. It is not a qualified action because the federal government is mandating that the action must occur.
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Annuity Transactions