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Investments glossary

Qualifying Investment


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JACK NICHOLSON: My point of view, while extremely cogent, is unpopular. LOS ANGELES TIMES: Which is? JACK NICHOLSON: That the repressive nature of the legalities vis-a-vis drugs are destroying the legal system and corrupting the police system. LOS ANGELES TIMES: Let\'s talk about acting for a minute.

— Jack Nicholson

A qualifying investment refers to an investment purchased with pretax income, usually in the form of a contribution to a retirement plan. Funds used to purchase qualified investments do not become subject to taxation until the investor withdraws them.

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