What is the difference between registered annuity and unregistered annuity?

A registered annuity is an investment product that is held within a registered account, such as a Registered Retirement Savings Plan (RRSP) in Canada or an Individual Retirement Account (IRA) in the U.S., allowing for tax-deferred growth until withdrawal. In contrast, an unregistered annuity is not held within a registered account, meaning it does not offer the same tax benefits, and investment income is subject to taxation in the year it is earned. This distinction affects how and when taxes are applied to the investment's growth and withdrawals.