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 ?
Administrators of employee benefit plans, as well as qualified retirement plans should determine if they meet the definition of fiduciary.
QUALIFIED RETIREMENT PLANS THAT HAVE NOT BEEN properly updated or have not been operating according to plan provisions may be disqualified and, as a result, lose important tax benefits.
Investment Advisor (Shrewsbury, NJ), a magazine serving independent financial advisors published by Wicks Business Information, has launched Retirement Plan Advisor/Interactive Edition, a monthly e-newsletter focusing on the needs of readers who offer 401(k) and other qualified retirement plans to their clients.
The Treasury and IRS issued final regulations regarding minimum distribution rules for defined benefit plans and annuity products purchased with account balances in other types of qualified retirement plans and IRAs.
Establishing and maintaining qualified retirement plans is very costly for employers.
Even though qualified retirement plans are subject to numerous pension law protections (namely, the Employee Retirement Income Security Act of 1974, more commonly known as ERISA), individuals often prefer not to leave their retirement funds under the control of an organization where they no longer work.
It also permits an employer to roll the assets from certain qualified retirement plans (except 403(b) plans) to a new 401(k) plan.
As your business grows and income becomes more predictable, you should also plan to invest outside your qualified retirement plans and outside your business itself.
VCR is a temporary, experimental program permitting employers that meet certain conditions to voluntarily correct operational defects in their qualified retirement plans and avoid the risk that the IRS may disqualify their plans.
11 /PRNewswire/ -- The recently announced IRS voluntary compliance (VCR) program, designed to encourage sponsors of qualified retirement plans to correct operational defects, provides an opportunity for companies to avoid future harsh penalties, says Coopers & Lybrand, the international accounting, tax and benefits consulting firm.

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