Qualified Retirement Plan (QRP) Overview

Qualified Retirement Plan

 

A Qualified Retirement Plan is a retirement plan sponsored by an employer that qualifies for special tax treatment as specified in Section 104(a) of the Internal Revenue Code.

There are numerous types of qualified retirement plans; however it is easiest to break them into three primary categories: Individual Retirement Arrangement, Defined Benefit Plans, and Defined Contribution Plans.

Creating a qualified retirement plan can be a valuable tool to business owners for several reasons. There are many benefits that a qualified retirement plan can offer employer and employee’s alike.