topic what is a non-qualified plan in Get your taxes done using TurboTax

what is a non-qualified plan

jean-jones398 — Tue, 03 Mar 2026 18:40:12 GMT

Re: what is a non-qualified plan

ThomasM125 — Tue, 03 Mar 2026 18:57:00 GMT

A non-qualified pension plan does not comply with rules set up by the IRS and the employment retirement income security act (ERISA) governing most retirement plans such as 401-K and other retirement plans offered by companies. One key feature of them is employers cannot deduct contributions to the plans. They are often just available to highly-compensated employees, such as corporate officers.

If you are trying to determine if your retirement plan is qualified or not, you would have to ask your plan administrator to be sure, but most plans offered by large companies are qualified plans.

Re: what is a non-qualified plan

Mike9241 — Tue, 03 Mar 2026 19:07:23 GMT

There are many types of non-qualified plans. They have their pros and cons vs a qualified plan

For example, coverage by a non-HDHP would deny you the benefit of contributing to a Health Savings Account

you need information about the pros and cons, including the tax effects.