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 ?
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.
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.
But tax-qualified plans are restrictive, requiring recipients to be chronically ill and subject to a plan of care provided by a licensed health care practitioner.
The rules for ESOPs are similar to those of other tax-qualified plans in terms of participation, allocation, vesting, and distribution, but special considerations may apply.
Here he reviews deferred compensation from taxable subsidiaries, enhanced tax-qualified plans, severance benefits, and consulting contracts-additional options that may be available depending on the situation of the individual executive.
Generally, deferred compensation arrangements and stock option plans are not subject to the same complicated regulations that can make administering tax-qualified plans so expensive.
Most of IRAs' asset growth has come from investment gains and rollovers from other tax-qualified plans (such as 401(k)s), and not from new contributions.
Since 1974, Congress has repeatedly reduced the benefits that can be provided in tax-qualified plans.