What is a 'Qualified Retirement Plan'

A type of retirement plan established by an employer for the benefit of the company’s employees. Qualified retirement plans give employers a tax break for the contributions they make for their employees. Qualified plans that allow employees to defer a portion of their salaries into the plan also reduce employees’ present income-tax liability by reducing taxable income. Qualified retirement plans help employers attract and retain good employees.

Explaining 'Qualified Retirement Plan'

Qualified plans come in two types: defined benefit and defined contribution. Defined benefit plans give employees a guaranteed payout and place the risk on the employer to save and invest properly to meet plan liabilities. A traditional pension is an example of a defined benefit plan. Under defined contribution plans, the amount employees receive in retirement depends on how well they save and invest on their own behalf during their working years. A 401(k) plan is an example of a defined contribution plan.

Further Reading

Financial incentives and retirement: evidence from federal civil service workers
www.sciencedirect.com [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

Company stock and retirement plan diversification
papers.ssrn.com [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

Discrimination Rules for Qualified Retirement Plans: Good Intentions Confront Economic Reality
www.jstor.org [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

Employee education and the likelihood of having a retirement savings program
papers.ssrn.com [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

Handbook of consumer finance research
link.springer.com [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

What the stock market decline means for the financial security and retirement choices of the near-retirement population
www.aeaweb.org [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …

How persistent low expected returns alter optimal life cycle saving, investment, and retirement behavior
www.nber.org [PDF]
… assets and enter “accumulation” phase, during which they stockpile assets for the final, retired phase of … 40 percent of US workers have calculated how much they will need to retire on, 30 … Withdrawal restrictions on IRAs and 401 (k) s and other retirement plans also appear to be …