What is a Qualified Retirement Plan?

There are many types of retirement plans employees can choose from. One of them is the qualified retirement plan. The latter is authorized by the IRS (Internal Revenue Service). These plans should follow particular rules and regulations in order to fall in this category and serve in the best interest of their holders.

These plans are deferred from taxes. Thus, employees are allowed to contribute to them and accumulate money without being bothered by Uncle Sam. The qualified retirement plans are usually sponsored by employers on behalf of employees. Examples of qualified retirement plans include 401k plans and IRA.

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