Qualified Plans

Qualified plans are retirement plans that meet specific requirements set by the IRS. They offer tax benefits, allowing individuals to save for retirement while deferring taxes on contributions and investment growth until withdrawal. Common types of qualified plans include 401(k)s and IRAs. To maintain their qualified status, these plans must adhere to rules about contributions, withdrawals, and nondiscrimination to ensure fair access for all employees. This makes qualified plans an effective way for individuals and employers to prepare financially for retirement while benefiting from certain tax advantages.