Qualified Retirement Plan
taxAlso known as: qualified plan, ERISA plan
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
Qualified plans offer pre-tax contributions, tax-deferred growth, and (for traditional accounts) tax-deferred withdrawals at retirement. They also receive ERISA protection from creditors and bankruptcy (with some exceptions). Required to follow non-discrimination rules (can't favor highly-compensated employees). Subject to RMDs at age 73 (rising to 75 by 2033). Examples: 401(k), 403(b), Defined Benefit Pension, Profit-Sharing, ESOP. Distinct from non-qualified plans (deferred comp, golden handshakes) which lack ERISA protection but have more flexible design.
Use these calculators to apply this concept
Related tax terms
Adjusted Gross Income (AGI)
Adjusted Gross Income (AGI) is your total gross income minus specific "above-the-line" deductions like contributions to ...
Modified Adjusted Gross Income (MAGI)
Modified Adjusted Gross Income (MAGI) is your AGI plus certain deductions added back, used to determine eligibility for ...
Standard Deduction
The standard deduction is a fixed dollar amount that reduces your taxable income. For 2026, it's $16,100 single, $32,200...
Marginal Tax Rate
Your marginal tax rate is the rate applied to your last dollar of taxable income — the bracket your highest-earning doll...
Effective Tax Rate
Your effective tax rate is your total tax liability divided by your total income — the blended average across all tax br...
← Back to glossary · Suggest an addition: [email protected]