Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Qualified Retirement Plan (Qualified Plan)-QRP

Print

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, providing 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 IRS levies and  QDROs.
More

Keep Learning

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules
Change