Qualifying Investment
What is 'Qualifying Investment' An investment purchased with pretax income. Money invested in a qualifying investment trust, annuity or plan is exempt from income taxes until it is withdrawn. These sorts of investments are tax-deferred, because the money invested in them is taxed at withdrawal only. Explaining 'Qualifying Investment' Some types of investments that...
Quartile
DefinitionA quartile is a type of quantile. The first quartile is defined as the middle number between the smallest number and the median of the data set. The second quartile is the median of the data. The third quartile is the middle value between the median and the highest value of the data set. Quartile What is a...
Qualified Trust
What is 'Qualified Trust' A tax-advantaged fiduciary relationship between an employer and an employee in the form of a stock bonus, pension, or profit-sharing plan in which the underlying beneficiary may use his or her life expectancy to determine required minimum distribution amounts. Section 401(a) of the Internal Revenue Code authorizes and sets forth the requirements for...
Qualified Domestic Relations Order (QDRO)
What is 'Qualified Domestic Relations Order - QDRO ' A type of court order typically found in a divorce agreement that recognizes that the ex-spouse is entitled to receive a predefined portion of the individual's retirement plan. In most cases, the qualified domestic relations order (QDRO) allots 50% of the value of the assets gained from the...
Qualified Pre-Retirement Survivor Annuity (QPSA)
Qualified Pre-Retirement Survivor Annuity (QPSA) What is 'Qualified Pre-Retirement Survivor Annuity - QPSA' A death benefit that is paid to the surviving spouse of a deceased employee. If the employee dies before retirement, the qualified pre-retirement survivor annuity is paid to recompense the surviving spouse for the loss of retirement benefits that would have otherwise been...
Quantity Supplied
What is 'Quantity Supplied' In economics, quantity supplied describes the amount of goods or services that are supplied at a given market price. How supply changes in response to changes in prices is called the price elasticity of supply. The quantity supplied depends on the price level, and the price can be set by either a governing...
Qualified Production Activities Income (QPAI)
Qualified Production Activities Income (QPAI) What is 'Qualified Production Activities Income - QPAI' Income derived from domestic production that qualifies for reduced taxation. More specifically, qualified production activities income is the difference between the manufacturer's domestic gross receipts and aggregate cost of goods and services related to producing the domestic goods. This reduced tax is intended...
Qualifying Annuity
What is 'Qualifying Annuity' This type of annuity is similar to any other, except that it has been approved by the IRS for use within a Qualfied Retirement Plan or IRA. Qualifying Annuties can be either fixed, indexed or variable, depending upon the investment objectives of the plan sponsor. Contributions made into a Qualifying Annuity are tax-deductible...
Qualified Professional Asset Manager (QPAM)
What is 'Qualified Professional Asset Manager - QPAM' A registered investment advisor/manager. The criteria for qualifying as a QPAM are defined by the Employee Retirement Income Security Act (ERISA). Regulated institutions such as banks and insurance companies may qualify as a QPAM. Under amendments that came into effect in August 2005, a QPAM is also defined as...
Quarterly Income Preferred Securities (QUIPS)
What is 'Quarterly Income Preferred Securities - QUIPS' Shares that are an interest in a limited partnership that exists solely for the purpose of issuing preferred securities and lending the proceeds of the sales to its parent company. They usually have a $25 par value, NYSE listing and cumulative quarterly distributions. Explaining 'Quarterly Income Preferred...