What the primary incentives for an employer to sponsor a qualified plan?
A qualified plan primarily provides attractive tax incentives unavailable elsewhere. Employer contributions are deductible when funded, employees’ accumulations are tax-deferred, and plan distributions can often be given favorable tax treatment. In addition, qualified plans comprise a valuable part of sponsors’ benefits packages that help attract and retain employees, as well as provide incentives for employees to help themselves accumulate funds for their retirement. 5.
