Life · Chapter 11 · Qualified vs Non-Qualified
Qualified Plan
Definition
A retirement plan meeting IRS/federal requirements for favorable tax treatment: employer contributions are deductible business expenses, contributions are not currently taxable to the employee, and earnings grow tax-deferred until withdrawn (typically in retirement, at a lower bracket).
In plain English
Follow the government's fairness rules, get the tax candy: deduct now, defer growth, tax later.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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