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Qualified Retirement Plan

Qualified Retirement Plan is a plan that offers tax benefits, because it meets the requirements of the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA).
Benefits that a qualified retirement plan offers are the deduction of annual allowable contributions, postponed contributions and earnings on those contributions and transfer into a different type of Individual Retirement Account (IRA).
Qualified Retirement Plan can be either defined-benefit plan or defined-contribution plan, and most known Qualified Retirement Plans are 401(k), profit sharing plans and money-purchase pension plans.

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