What exactly is a “Qualified” retirement plan?
A qualified retirement plan is one that is established by employers for their employees that meets the requirements of IRS under the Internal Revenue Code Section 401(a) or 403(a) and is eligible for certain tax considerations. The plan can provide for employer contributions, as in a pension, retirement or profit sharing plan, which can include employee contributions. Employers can usually deduct their plan contributions made for or on behalf of their eligible employees on the business’s tax return as business expenses. Public Law 109-8 amended the Bankruptcy Code to exempt most retirement plans organized even those not subject to ERISA (Employee Retirement Income Security Act of 1974 P.L. 93-406 ) and accord them protected status as property that could be claimed as exempt by the debtor under the United States Bankruptcy Code. Even with the most recent changes to the Bankruptcy Law, most retirement plans are exempt. The Bankruptcy Law automatically exempts almost every tax-exempt pens
