Qualified Retirement Plans FAQs How do you know if your retirement plan is qualified? Your retirement plan is qualified if it meets the requirements of the IRC and ERISA. Usually, you have a qualified retirement plan if you have a 401(k) at work or if you are self-employed and have a solo 401(k). Is 401k considered a qualified retirement plan? Yes, a 401(k) is considered a qualified retirement plan. It meets the requirements of the IRC and ERISA for tax-deferred growth of investments and employer-matching contributions. What is considered a qualified retirement plan? A qualified retirement plan is a retirement plan that meets the requirements of the IRC and ERISA on factors such as participation, vesting, operation, and discrimination. Examples include 401(k)s, 403(b)s, cash balance plans, and profit-sharing plans. Who benefits from a qualified retirement plan? Both employers and employees benefit from a qualified retirement plan. For instance, employers can take advantage of tax deductions due to their contributions, while employees can defer taxes on their contributions and investment gains until they start withdrawing funds. What are the advantages of a qualified retirement plan? The advantages of a qualified retirement plan include employer-matching contributions, tax-deductible contributions for employers and employees, and tax-deferred growth of investments. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.