Qualified retirement plan

From Bogleheads
(Redirected from Qualified Retirement Plan)
Jump to: navigation, search

A qualified retirement plan is a plan that meets the requirements of Internal Revenue Code Section 401(a) [1] and the Employee Retirement Income Security Act of 1974 (ERISA) and therefore qualifies for favorable tax treatment.

For the employer, these plans allow deduction of annual allowable contributions by each participant.

For the employee, contributions and earnings are tax-deferred until withdrawn.

Broadly speaking, a qualified retirement plan will fit into one of two categories: defined benefit or defined contribution.

References

  1. 26 USC § 401 - Qualified pension, profit-sharing, and stock bonus plans, Legal Information Institute , Cornell University Law School]

See also

Non-Qualified Retirement Plan
Employer retirement plans overview

External links

Definitions of qualified retirement plan on Google
Qualfied Retirement Plan, on Investorglossary.com