qualified retirement plan


A plan that meets the requirements of Internal Revenue Code Section 401(a) and the Employee Retirement Income Security Act of 1974 (ERISA) and is thus eligible for favorable tax treatment. These plans offer several tax benefits: they allow employers to deduct annual allowable contributions for each participant; contributions and earnings on those contributions are tax-deferred until withdrawn for each participant; and some of the taxes can be deferred even further through a transfer into a different type of IRA. opposite of non-qualified retirement plan.

Use this term in a sentence

He had a qualified retirement plan and everyone thought it was a good idea to have it because he was going to need it.

​ Was this Helpful? YES  NO 6 people found this helpful.

As part of their benefits package they offered a premium qualified retirement plan. They wanted to attract and retain to top talent.

​ Was this Helpful? YES  NO 5 people found this helpful.

Most workers do not have time to manage their own investments and thus rely on qualified retirement plans offered by their employers.

​ Was this Helpful? YES  NO 3 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
conduit IRA credit for qualified retirement savings contribution