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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Further, this ruling is limited to fee-based non-qualified annuities sold by the company, besides, the annual fee cannot exceed 1.50% of the annuity's account value and it's important to note, that the advisory fees withdrawn from qualified annuities, are not part of the ruling, as they already receive favourable tax treatment.
Recent changes in Federal law (e.g., qualified annuities, penalties on premature distributions, and higher discrimination and participation requirements) have restricted not only the benefits of a qualified plan, but plan administration as well.
Qualified annuities are subject to all laws governing IRAs, including but not limited to, age and contribution limits, early and late IRS withdrawal penalties and required minimum distributions.
Although they appear under a variety of titles, the common thread for qualified annuities is that, within narrow limits prescribed by the Code, an investment in the contract is currently deductible.
Qualified annuities are purchased with pretax dollars through retirement plans such as those under Internal Revenue Code section 401(k) of section 403(b).
Boomerretirees can best leverage their nest eggs, he says, by first drawing down non-qualified money that has already been taxed (e.g., mutual funds), deferring distributions from qualified accounts (such as IRAs, 401(k)s or qualified annuities) for the later years.