[Q003a]

qualified retirement plan

A retirement plan that has been formed to comply with the IRS federal tax regulations, whether the plan is a pension plan, a profit-sharing plan or a savings plan. Funds to the plans will accumulate but taxes are deferred until actual retirement and the distribution of benefits. Employee contributions may be made to qualified plans on a pretax earnings basis. Contributions to the plans by employers are treated as current business expenses for tax deduction purposes.