Qualified Retirement Plan

A qualified retirement plan is an employer-sponsored retirement savings program that meets strict requirements set forth by the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA), making it eligible for special tax benefits, including tax-deferral on contributions and investment earnings. Common types include 401(k) plans, pension plans, and profit-sharing plans. Both employers and employees may contribute, and plans must be offered fairly to eligible employees, follow contribution limits, nondiscrimination rules, and provide protections for participants—such as asset protection and rollover options. Taxes are deferred until funds are withdrawn, typically in retirement, and employers receive tax deductions for contributions.