Retirement Plan FAQ
Quick answers to common questions about retirement plans, including 401(k) plans, IRAs, Keoghs and SEPs.
» What is a qualified retirement plan?
Why are 401(k) plans so popular?
What is a Keogh plan?
What does it mean to be "vested" in my retirement plan?
Is an IRA a retirement plan?
I work for a company and also have a small business of my own. Can I set up a retirement plan for my business even if I'm covered by a plan at work?
Is my retirement plan protected from creditors?
What is a qualified retirement plan?
A qualified plan is simply one that is described in Section 401(a) of the Tax Code. The most common types of qualified plans are profit sharing plans (including 401(k) plans), defined benefit plans and money purchase pension plans. In general, your contributions are not taxed until you withdraw money from the plan. Most retirement plans that you obtain through your job are qualified plans.
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