Qualified retirement plan

Qualified retirement plan,

Definition of Qualified retirement plan:

  1. A qualified retirement plan meets the requirements of Internal Revenue Code Section 401(a) of the Internal Revenue Service (IRS) and is thus eligible to receive certain tax benefits, unlike a non-qualified plan. An employer establishes such a retirement plan on behalf of and for the benefit of the company’s employees. It is one tool that can help employers attract and retain good employees.

  2. Qualified plans come in two main types: defined benefit and defined contribution, though there are also some other plans that are hybrids of the two, the most common of which is called a cash balance plan. Defined benefit plans give employees a guaranteed payout and place the risk on the employer to save and invest properly to meet plan liabilities. A traditional annuity-type pension is an example of a defined-benefit plan.

  3. A plan established by employers under the requirements set forth in Section 401(a) and 403(a) of the Internal Revenue Code for the benefit of their employees who want to save for retirement. Plans that meet the requirements receive favorable tax treatment on behalf of the employer and the plan participants, such as the tax deductibility of contributions and tax deferral on earnings in the plan.

How to use Qualified retirement plan in a sentence?

  1. Employers offer retirement plans to attract and retain employees.
  2. Examples of qualified retirement plans include 401(k), 403(b), and profit-share plans.
  3. Stocks, mutual funds, real estate, and money market funds are the types of investments sometimes held in qualified retirement plans.
  4. A qualified retirement plan meets IRS requirements and offers certain tax benefits.
  5. Taking contributions out of a retirement plan before retirement age can often result in tax penalties.

Meaning of Qualified retirement plan & Qualified retirement plan Definition

Qualified Retirement Plan,

How To Define Qualified Retirement Plan?

An eligible pension plan meets the requirements of Article 401 (a) of the Federal Revenue Code (IRS) and may therefore receive certain tax benefits as opposed to certain packages that are not eligible. The employer prepares a pension plan on your behalf and for the benefit of the company's employees. It's a tool that can help employers attract and retain good employees.

  • Eligible pension plans meet IRS requirements and offer some tax benefits.
  • Examples of eligible pension plans are 401 (k), 403 (b) and for-profit plans.
  • These types of investments, sometimes in retirement plans, are stocks, mutual funds, real estate and money market funds.
  • Employers offer retirement plans to attract and retain employees.
  • Withdrawal from a pension plan before retirement age can often result in tax penalties.

A retirement plan designed to comply with federal IRS tax regulations, whether it is a retirement plan, a profit sharing plan or a savings plan. Funds to the plan are accrued, but taxes are deferred until effective retirement and benefit sharing. Employees can participate in eligible projects based on pre-tax results. The employer's contribution to the project is treated as an ongoing business expense for tax-deductible purposes.

Literal Meanings of Qualified Retirement Plan


Meanings of Qualified:
  1. Be officially recognized as eligible to perform certain certified tasks.

Sentences of Qualified
  1. I can only rate this rating as a high level of success

Synonyms of Qualified

guarded, restricted, circumscribed, conditional, licensed, reserved, certificated, professional, tentative, contingent, certified, limited, chartered, hesitant, cautious, bounded, equivocal


Meanings of Retirement:
  1. The act or process of completing work and interrupting a job.

  2. Removing the jury from the courtroom to deliver the verdict.

  3. Separation.

Sentences of Retirement
  1. One person near retirement

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  3. I live in retired Miami

Synonyms of Retirement

obscurity, isolation, seclusion, giving up work, loneliness, stopping working, solitude, privacy, retreat, stopping work


Synonyms of Plan

schedule, recipe, ambition, objective, map out, idea, hope, organize, aim, work out, project, intention, stratagem, game plan, suggestion, procedure, formulate, think out, shape, strategy, concoct, aspiration, arrangement, scheme, design, programme