qualified plan

(redirected from Qualified Retirement Plans)

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 ?
Operating since 2008, DPI Benefits is an independent benefits broker and consultant offering qualified retirement plans and group benefits to hospitals and other businesses throughout the state of Kansas.
However, trustee-to-trustee transfers and direct transfers to and from qualified retirement plans are excluded from the one-year rule.
My comment that, beginning in 1992, CPAs were not taught to view qualified retirement plans as resources for tax planning, refers to a shift in focus from actuarial design based on employee demographic understanding, job classification, compensation limits, non-highly compensated status, new comparability, and cross testing to the new, commoditized style of financial industry-sponsored, payroll-sponsored, product- and market-driven retirement planning, a one-size-fits-all approach.
Premature distributions from qualified retirement plans are exempt from the 10 percent penalty tax if the distribution is used to make a payment to an alternate payee (defined to include a spouse, former spouse, or child of the taxpayer) pursuant to a QDRO.
A qualified retirement plan, also referred to as a "qualified plan," is a tax-favored retirement arrangement established by an employer that is designed to satisfy the requirements of Section 401 of the Internal Revenue Code.
According to the Investment Company Institute in Washington, that's how much money Americans have stashed in qualified retirement plans as of the end of 2006.
The survey includes information on retirement age and inter-industry comparisons, mandatory retirement policies, the increase in the use of qualified retirement plans, current firm financial plans and funding for buyouts of capital interests and for support of retirement obligations.
Qualified retirement plans appeal to both employers and employees.
Prior to the Tax Reform Act of 1996, certain individuals taking lump sum distributions from their qualified retirement plans could choose to pay the income tax on the distribution using either a five-year averaging or ten-year averaging method.
Various changes in tax law have had a positive impact on how much Americans can save in qualified retirement plans. By reviewing the different types of plan designs before the end of 2006, CPAs and their clients may be better able to capitalize on some of these changes.
According to the IRS, there generally are three common mistakes, or "qualification failures," in qualified retirement plans: plan document failure (the plan document does not satisfy the tax code); operational failure (the plan document is not followed properly); and demographic failure (the plan violates nondiscrimination rules in the tax code).
Description: This program is for financial professionals who specialize in retirement plans, helping them gain knowledge and experience in the investment side of qualified retirement plans.

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