non-qualified retirement plan


A retirement plan that does not meet the IRS (or ERISA) requirements for favorable tax treatment. Non-qualified retirement plans are funded by employers and are more flexible than, but do not have the tax benefits of, qualified retirement plans. Benefits are paid at the retirement age in the form of annuities, which are taxed as ordinary income tax, or in lump sum payments, which can be transferred into an IRA to defer taxes. opposite of qualified retirement plan.

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You may want to try and take on a non-qualified retirement plan that will help you have all you need later.

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The non-qualified retirement plan was what the client had been set up with by the financial adviser he was working with previously.

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When planning for retirement, John Smith had to deduct at least 15 percent of the funds from his company's non-qualified retirement plan to cover the amount he would pay in taxes.

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