Michigan, does the teacher pension plan count as qualified?
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It's likely, but you will want to double-check the qualified plan characteristics (below) to be sure. Or just ask the plan administrator.
Qualified plan characteristics
The following rules apply to qualified plans.
•Plan must be for the exclusive benefit of employees or their beneficiaries. The term employee includes an individual who is self-employed. [IRC §401(c)(1)]
•The employer can deduct employer contributions and employee elective deferrals to the plan, subject to limitations. Earnings from contributions accumulate tax free until distributed.
•A qualified plan is either a defined contribution plan, a defined benefit plan, or a combination of both. Different rules apply to each. An employer can have more than one qualified plan, but contributions to all plans must not total more than the overall limits.
•Qualified plans are subject to nondiscrimination rules (must not favor highly-compensated employees).
•An employee must be vested in benefits under a minimum vesting schedule
•Certain types of distributions may qualify for tax-free rollover treatment into another qualified plan or IRA
It's likely, but you will want to double-check the qualified plan characteristics (below) to be sure. Or just ask the plan administrator.
Qualified plan characteristics
The following rules apply to qualified plans.
•Plan must be for the exclusive benefit of employees or their beneficiaries. The term employee includes an individual who is self-employed. [IRC §401(c)(1)]
•The employer can deduct employer contributions and employee elective deferrals to the plan, subject to limitations. Earnings from contributions accumulate tax free until distributed.
•A qualified plan is either a defined contribution plan, a defined benefit plan, or a combination of both. Different rules apply to each. An employer can have more than one qualified plan, but contributions to all plans must not total more than the overall limits.
•Qualified plans are subject to nondiscrimination rules (must not favor highly-compensated employees).
•An employee must be vested in benefits under a minimum vesting schedule
•Certain types of distributions may qualify for tax-free rollover treatment into another qualified plan or IRA
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