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Qualified Retirement Plan (Qualified Plan)

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A plan that meets requirements of the Internal Revenue Code and as a result, is eligible to receive certain tax benefits. These plans must be for the exclusive benefit of employees or their beneficiaries.

Notes:

There are two kinds of qualified plans: defined-benefit plans and defined-contribution plans.

Some examples of defined-contribution plans are 401(k) plans, money-purchase pension plan and profit-sharing plans.

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