How are qualified vs non-qualified annuities taxed?

• A. Qualified annuities taxed as ordinary income upon withdrawal; non-qualified annuities tax only the earnings portion.
• B. Qualified annuities are tax-free on withdrawal; non-qualified are taxed as ordinary income.
• C. Both types are tax-free withdrawals.
• D. Both types are taxed at capital gains rates.

Answer: (A)