Qualified Retirement Plan (Qualified Plan)

Definition

An employer sponsored retirement plan that meets certain requirements, as specified  under Code Section 401(a).

Qualified plans include defined benefit plans, money purchase pension plans, profit sharing plans, and stock bonus plans.

Contributions to qualified plans are deductible on the business’s tax return, provision they are within specified limits

Earnings in a qualified plan accrue on a tax-deferred basis.

Referring Cite

IRC § 401(a), IRS Publication 560

Additional Helpful Information

• Qualified plans are established by employers for the benefit of participants and their beneficiaries
• Assets in qualified plans cannot be assigned or alienated, except under limited circumstances, such as certain judgments and settlements-including  QDRO

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