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qualified retirement plan (qualified plan)

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Financial Dictionary

Qualified Retirement Plan (Qualified Plan)

A plan that meets requirements of the Internal Revenue Code and as a result, is eligible to receive certain tax benefits. These plans must be for the exclusive benefit of employees or their beneficiaries.

Investopedia Commentary

There are two kinds of qualified plans: defined-benefit plans and defined-contribution plans.

Some examples of defined-contribution plans are 401(k) plans, money-purchase pension plan and profit-sharing plans.

Related Links

Tough Times...Should You Disturb Your Qualified Plan's Assets?
Qualified Plan Loans: Guidelines to Operations
Introductory Tour through Retirement Plans
Making Salary Deferral Contributions - Part 1
Making Salary Deferral Contributions - Part 2

See also: 401(k), Defined-Benefit Plan, Defined-Contribution Plan, Exempt Income, Internal Revenue Service (IRS), IRA, Money-Purchase Pension Plan, Pension Plan, Profit-Sharing Plan

Also spelled: QRP

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