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Qualified retirement plan

Definition

A retirement plan, such as a 401(k) plan, an employee annuity plan (26 U.S.C. § 403(a)), an individual retirement account (26 U.S.C. § 408(a)), or a governmental deferred compensation plan (26 U.S.C. § 457), that satisfies requirements of the Internal Revenue Code and is eligible for special tax treatment. For example, generally an employee may defer paying taxes on contributions to a qualified retirement plan until distributions are made.

Illustrative caselaw

See, e.g. Bandak v. Eli Lilly and Co., 587 F.3d 798 (7th Cir. 2009).

See also

Definition from Nolo’s Plain-English Law Dictionary

A retirement plan that meets certain requirements under the Internal Revenue Code and is thus eligible for special tax considerations and benefits. Often, the plan allows employers to make tax deductible contributions on behalf of eligible employees. Employees generally do not have to pay tax on the plan earnings until they withdraw the money.

Definition provided by Nolo’s Plain-English Law Dictionary.

August 19, 2010, 5:22 pm