Broker Check

Financial Planning for Business Owners

Types of Qualified Plans

What is a qualified plan? A qualified plan is simply a plan described in Section 401(a) of the Tax Code. Qualified plans are retirement plans recognized by the Internal Revenue Service in which investment funds grow tax-deferred. Defined-benefit and defined-contribution plans are the two most popular categories of qualified plans. 

  • 401(k)
  • Profit Sharing
  • Defined-Benefit
  • Cash Balance
  • ESOP

Non-Qualified Plans

Non-qualified plans are types of retirement savings plans that do not adhere to the Employee Retirement Income Security Act (ERISA) guidelines. Generally, non-qualified plans are utilized to give highly-paid executives additional options for retirement savings. 

  • Deferred Compensation Plans
  • Executive Bonus Plans
  • Group Carve-Out Plans
  • Split-Dollar Life Insurance Plans
  • SERP
  • Golden Handcuffs