qualified plan

(redirected from Tax-Qualified 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 ?
And there are independent firms out there who have decided not to allow their advisors to use brokerage products, transactional products with tax-qualified plans," he said.
Unlike 457(b) plans and tax-qualified plans such as 401(k)s, there is no limit on the amount that may be deferred under a 457(f) plan.
According to the brief, this means that while the most important purpose of the plan must be to provide deferred compensation to a select group of management or highly compensated employees, a top hat plan may have other, secondary, purposes, such as retaining top talent, allowing highly compensated individuals to realize earnings in later tax years with presumably lower marginal tax rates, or avoiding limitations in the Internal Revenue Code (IRC) that apply to tax-qualified plans.
For those fortunate enough to be covered by a pension, there is a concern that much of the tax benefits flow to higher income employees, and in many instances the financial constraints on lower wage workers limit their ability to contribute to tax-qualified plans and thus, to benefit from those subsidies.
For tax-qualified plans, first-year premiums averaged $2,180, while for non-qualified plans, premiums averaged $1,483.
As Robertson is a case of first impression in Florida, the authors believe it addresses an issue of great importance, potentially affecting thousands of nonspouse beneficiaries of IRAs and other types of tax-qualified plans or accounts in Florida.
Employer plans are tax-qualified plans described in IRC Sec.
General types of tax-qualified plans under Section 125:
Instead, the purchase is conducted in the form of a contribution, similar to other tax-qualified plans.
Two recent developments with regard to bankruptcy are substantially changing the landscape regarding the attractiveness of IRA rollovers for employees with large accounts in tax-qualified plans.
The Code does not require tax-qualified plans to make mandatory distributions, so only plans that make them need to be amended to comply with the automatic rollover rules.
The Internal Revenue Service (IRS) studied 401(k) plan compliance with Internal Revenue Code requirements for tax-qualified plans.