Qualified Plans
Which of these does IRS guidance describe as qualified plans?
Answer and explanation
Answer: A. IRS Publication 560 states that profit-sharing, money purchase pension, and defined benefit plans are qualified plans, and that a 401(k) plan is also a qualified plan. The category is therefore wider than defined benefit alone and narrower than any employer-funded arrangement.Source: IRS Publication 560 — Pub 560, Which plans are qualified
More qualified plans questions
- Why does it matter to an employer whether a retirement plan is qualified?
- By when may an employer set up a SEP for a given year?
- How does IRS guidance classify a 401(k) plan?
- How is a SIMPLE IRA plan funded?
- In which plan does the participant rather than the employer bear the investment risk?
- What distinguishes a defined benefit plan from a defined contribution plan?
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