Skip to main content
June 6, 2019
Solved

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

  • June 6, 2019
  • 1 reply
  • 0 views
No text available
Best answer by RachelW33

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. 

1 reply

RachelW33
RachelW33Answer
June 6, 2019

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. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"