For a 401k what does qualifying or non qualifying mean?

medcad72 — Thu, 06 Jun 2019 07:07:05 GMT

A 401(K) is a qualified plan. A qualified retirement plan...

Rachel_W — Thu, 06 Jun 2019 07:07:06 GMT

A 401(K) is a qualified plan.

A qualified retirement plan is an employer's plan to benefit employees that meets specific Internal Revenue Code requirements. Because a 401(K) plan is a qualified plan, you are able to defer tax on the amounts you contribute to the plan.

A Non-qualified plan does not meet those requirements and therefore is not eligible for any tax-deferral benefits.

topic For a 401k what does qualifying or non qualifying mean? in Retirement tax questions

For a 401k what does qualifying or non qualifying mean?

A 401(K) is a qualified plan. A qualified retirement plan...