What is the difference between qualified and non-qualified plans?

Retirement Savings, Retirement Plans
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4 weeks ago
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Qualified = pre-tax retirement savings accounts. I.E. 401(k), IRA, 403(b), Simple IRA, SEP IRA, etc...

Non-Qualified = after tax accounts. Cash, savings, joint brokerage accounts, etc...

Qualified accounts are subject to withdrawal rules in which you will be forced to take distributions and pay income tax at that point. Non-Qualified accounts are subject to interest, dividend and capital gain taxes.

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September 2004