Retirement Accounts

Definition of 'Qualified Retirement Plan'

There are two kinds of qualified plans: defined-benefit plans and defined-contribution plans.

Some examples of defined-contribution plans are 401(k) plans, money-purchase pension plan and profit-sharing plans.

A plan that meets requirements of the Internal Revenue Code and as a result, is eligible to receive certain tax benefits. These plans must be for the exclusive benefit of employees or their beneficiaries.