qualified plan

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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 ?
A qualified annuity is an annuity used in a retirement savings arrangements that qualifies for favorable treatment under federal income tax rules.
A qualified annuity is purchased through a tax-advantaged retirement plan and meets the minimum standards for the protection of individuals, as established by federal law in the Employee Retirement Income Security Act (ERISA).
With respect to a qualified annuity contract described in Section 403(b) (1): "The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities).
2) Also, IRC Section 2702 does not apply to (1) certain charitable remainder trusts, (2) a pooled income fund, (3) a charitable lead trust in which the only interest in the trust other than the remainder interest or a qualified annuity or unitrust interest is the charitable lead interest, (4) the assignment of a remainder interest if the only interest retained by the transferor or an applicable family member is as a permissible recipient of income in the sole discretion of an independent trustee, and (5) a transfer in trust to a spouse for full and adequate consideration in connection with a divorce if any remaining interests in the trust are retained by the other spouse.
This chart describes a GRAT meeting the requirements for a qualified annuity interest (i.
E had a retirement account through an employer, which was a qualified annuity under Sec.
5) The valuation of retained interests in trust under Section 2702 specifically does not apply to incomplete gifts (determined without regard to whether there is consideration); personal residence trusts (see heading below); charitable remainder annuity trusts and pooled income funds; charitable lead trusts (if the only interest other than the remainder or a qualified annuity or unitrust interest is the charitable lead interest); and certain charitable remainder unitrusts (if the CRUT provides for simple unitrust payments; or in the case of a CRUT with a lesser of trust income or the unitrust amount provision, the grantor and/or the grantor's spouse are the only noncharitable beneficiaries).
One important document is the report to the recipients of eligible rollover distributions, which can be rolled over into an IRA, another qualified employer plan, or a qualified annuity contract.
The taxable portion of such a gift will be minimal and the grantor will be able to replace or upgrade the residence at any time during the trust term or convert the interest into a qualified annuity.
Qualified annuity contracts are governed by the tax rules of the retirement account in which they are held.
A qualified annuity is described in the chart entitled 403(b) Plans, on page 283.
A conversion of the term interest into some other property right (other than a qualified annuity trust) is treated as a gift transfer of the retained term interest determined at the date of original transfer.