nonqualified

[ non-kwol-uh-fahyd ]

adjective

1. unqualified ( def 1 ).
2. not meeting the requirements in the pertinent provisions of the applicable regulations, as for tax or pension plan considerations.

Word History and Origins

Origin of nonqualified¹

non- + qualified

Example Sentences

An owner would incur a $2,500 monthly penalty if the ADU is rented to a nonqualified tenant ahead of time.

From Los Angeles Times

You could also take a nonqualified payment from your 529, but you would have to pay taxes on any earnings plus any additional fees.

From Slate

If you use any of your plan’s earnings on a nonqualified expense, you’ll pay taxes on those earnings plus a 10% penalty to the feds and a 2.5% penalty to California.

From Los Angeles Times

Health insurance is deemed a “nonqualified” expense under Internal Revenue Service rules, according to an online overview from Richard Polimeni, director of education savings programs at Bank of America.

From New York Times

Nonqualified mortgage lending came to a standstill in March.

From Seattle Times