Question

Which of the following are examples of a Qualified plan?


Excess Benefit Plan
Employee Stock ownership Plan
401(k) plan
Money Purchase Plan​

Answer 1

Explanation:

Among the various options given in question statement the correct option is the third one.

A qualified retirement plan meets the requirements of Internal Revenue services and has certain tax benefits. Some of the examples of qualified retirement plans include 401(k), 403(b), and profit-share plans. At time stocks and mutual funds are also categorized as qualified plans

Answer 2

The correct option is 401(k) plan

• It is an employer-sponsored retirement plan that properly qualifies for preferential tax treatment.

• It qualifies under Section 401(a) of the internal revenue co de and voluntarily complies with specific IRS regulations and typically provides tax advantages.

• The specific scheme allows the potential employer, worker, or both to give valuable contributions in the form of specific percentages or monetary values.