As you described it (Long-term Disability Plan, purchased with your own funds), it is likely a non-qualified plan. It is NOT a qualified plan.
'Qualified Retirement Plan': A type of retirement plan established by an employer for the benefit of the company’s employees. Qualified retirement plans give employers a
tax break for the contributions they make for their employees. Some qualified plans allow employees to defer a portion of their salaries into the plan to reduce their present income-tax liability by reducing
taxable income.
Qualified plans come in two types: defined benefit and defined contribution. Defined benefit plans give employees a guaranteed
payout and place the risk on the employer to save and invest properly to meet plan
liabilities. A traditional pension is an example of a defined benefit plan. Under defined contribution plans, the amount employees receive in retirement depends on how well they save and invest on their own behalf during their working years. A
401(k) plan is an example of a defined contribution plan.
Qualified plans only allow certain types of investments, which vary by plan but typically include publicly traded securities, real estate, mutual funds and money market funds. They also specify when distributions can be made, typically when the employee reaches the plan’s defined retirement age, when the employee becomes disabled, when the plan is terminated and not replaced by another qualified plan, or when the employee dies (in which case the beneficiary receives the distributions).
