Investor Glossary-qualified retirement planInvestor Glossary-qualified retirement planInvestor Glossary-qualified retirement planInvestor Glossary-qualified retirement planInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Qualified Retirement Plan

The HTML to link to this page

A qualified retirement plan meets the requirements of the IRS code section 401(a) and the ERISA and therefore receives favorable tax treatment. That favorable tax treatment available to a qualified retirement plan includes the option for an employer to deduct the allowable contributions it makes annually to its employee's qualified retirement plan. Additionally, a qualified retirement plan gives employees the option to save a portion of their income and the earnings on that income without paying taxes on it until withdrawal. Broadly, a qualified retirement plan will fit into one of two categories: defined benefit or defined contribution. The defined benefit qualified retirement plan is fading out of style as its cousin, the defined contribution qualified retirement plan, becomes more popular. A defined benefit qualified retirement plan is a plan that guarantees a specific retirement benefit based on an employee's salary history and years of service. A defined contribution qualified retirement plan is a plan that pays a retirement benefit based on the amount of money contributed to the account and the account's rate of investment growth.

Rate this qualified retirement plan definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: required rate of return, ex-dividend date, Key Rate Duration, FICO score, VIX, deferred revenue, class C shares, in escrow, wholly-owned subsidiary, reverse mortgage, minority interest, option premium, risk management, LIBOR, irrevocable trust, average price per share, 144a, implied volatility, margin rate, annual return, current ratio, dividends payable, Zero Cost Collar, real GDP, limit order, EBITDA, open position, stock market close, cancelled check, retained earnings, debt service coverage, deferred tax, phantom income, command economy, APR, ex-dividend, FTSE, per diem, 1031 exchange, labor relations, inflation, stock split, covered put, 401a, diluted share, liquidity ratio, balance sheet, 1035 exchange, quality assurance

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use