Listed for both qualified and non-qualified accounts (as denoted by Q, and NQ), this is the minimum dollar amount required to invest in a variable-annuity policy. Typically, the minimum amount to purchase a contract will differ for qualified and nonqualified accounts.
Qualified vs. non-qualified accounts: Under a qualified plan, an investor may invest in the variable annuity with pretax dollars through an employee pension plan, such as a 401(k) or 403(b). Money builds up on a tax-deferred basis, and when the qualified investor makes a withdrawal or annuitizes, all contributions received are taxable income. A nonqualified account, on the other hand, is available only for after-tax dollars. Once again money builds up tax-deferred, but upon annuitization only the gain, not the initial investment, is taxable income.