Types of Qualified Plans

Qualified Retirement plans* are plans that receive certain tax benefits under the Internal Revenue Code, offering pre-tax contributions and tax-deferred accumulation of funds.

• Simplified Employee Pension Plan (SEP)
• Savings Incentive Match Plan for Employees (SIMPLE)
• 401(k) Plan
• 412(i) Plan

*Withdrawals are taxed as ordinary income. If taken prior to age 59 ¹/₂, they may also be subject to a 10% federal income tax penalty. Qualified plans are subject to federal contribution limits that can make them inadequate as the sole source of retirement income for highly compensated employees.  

Next: Non-Qualified Plans