qualified retirement plan
Definition
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allowable contributions for each participant; contributions and earnings on those contributions are tax-deferred until withdrawn for each participant; and some of the taxes can be deferred even further through a transfer into a different type of IRA.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.
 Cite this definition
Related Terms
conduit IRA, rollover, forward averaging, Keogh Plan, pension plan, premature distribution, age-weighted plan, cash-balance plan, collectively bargained plan, frozen plan, prototype plan, single-employer plan
Related Research Articles from the InvestorGuide.com University
Estate Planning
Provides a guide to the estate planning process. Includes information on wills, living trusts, irrevocable trusts, and future healthcare decisions.
SEP and SIMPLE Plans
Learn about Simplified Employee Pension Plans and Savings Incentive Match Plans for Employees. Includes information on how to contribute, who is eligible, and how withdrawals work from each.
Roth IRA
Not satisfied with a typical IRA? Learn all you need to know about Roth IRAs, including information on contributions, withdrawals, conversions, distributions, and recharacterizations.
Featured Sponsor
|
|
