Qualified Plans

How does IRS guidance classify a 401(k) plan?

Answer and explanation
Answer: A. IRS Publication 560 states that a 401(k) plan is also a qualified plan, alongside profit-sharing, money purchase pension, and defined benefit plans. SEPs are the simplified alternative, and an IRA is an individual arrangement rather than an employer plan.Source: IRS Publication 560 — Pub 560, 401(k) as a qualified plan

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