Definition of «qualified plan»

A qualified plan is a type of employee benefit or retirement savings plan that meets certain requirements set by the Internal Revenue Service (IRS) under Section 401(a) of the United States Internal Revenue Code. These plans are designed to provide employees with tax-deferred benefits, meaning that they do not have to pay income taxes on contributions made to their accounts until they begin making withdrawals in retirement. Qualified plans include defined benefit plans and defined contribution plans such as 401(k)s, profit sharing plans, and employee stock ownership plans (ESOPs).

Sentences with «qualified plan»

  • Responsible for overall design, communication and administration of qualified plan benefit programs. (jobhero.com)
  • Another detail worth noting is the fact that the annual out - of - pocket maximum for qualified plans rises every year. (policygenius.com)
  • In qualified plans, there is less flexibility in terms of options for designated beneficiaries. (fidelity.com)
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