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.
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.