qualified plan

(redirected from Eligible Retirement Plan)

Qualified Plan

An annuity that one buys along with one's employer. That is, the annuitant and his/her employer both make tax-deferred contributions to the plan for a certain period, with withdrawals coming upon retirement. If the annuitant begins withdrawals before a certain age, withdrawal penalties apply. One may continue to make contributions until a certain age, usually around 65.

qualified plan

An employer-sponsored tax-deferred employee benefit plan that meets the standards of the Internal Revenue Code of 1954 and that qualifies for favorable tax treatment. Contributions by an employer and an employee accumulate without being taxed until payouts are made at the employee's retirement or termination.
References in periodicals archive ?
However, if the individual fails to transfer the eligible rollover distribution to an eligible retirement plan no later than the 60th day following the day of receipt, such amount would be included in gross income subject to tax.
As a result, eligible retirement plan participants will be able to access their money more quickly with a minimum of red tape.
After continued dialogue with advisors, Raymond James will absorb the cost of mutual fund sales charges and fee rebates to clients with eligible retirement plan and charitable trust accounts, and not require advisors to return commissions received on the mutual fund purchase transactions," the firm said in a statement in February.
The Internal Revenue Service (IRS) has amended the two safe harbor explanations that may be used to satisfy the requirement that certain information be provided to recipients of eligible retirement plan rollover distributions.
If the amount rolled over to an eligible retirement plan exceeds the portion of the pretax amount assigned or allocated to the plan, the excess is an after-tax amount.
402(c)(4)); (2) the employee transfers any portion of the property he or she receives in that distribution to an eligible retirement plan described in Sec.
A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and contribute all or part of it within 60 days to another eligible retirement plan.
This section regards a distribution from an eligible retirement plan of a deceased employee into an IRA as an eligible rollover distribution.
3) For purposes of this article, the term "conversion" is used to mean qualified rollover contributions from an eligible retirement plan to a Roth IRA, as described in [section]408A(e)(1).
1) But different rules apply to distributions made from a traditional IRA to an eligible retirement plan other than an IRA.
unless the distribution is transferred to an eligible retirement plan by
When the employer stock is distributed to you instead of rolled over into another eligible retirement plan, you will owe ordinary income taxes only on the stock's average cost basis, not its value on the date of distribution.