A period of time during the first few months or weeks of a new policy when an insurance company will not reimburse a policyholder for a claim in order to allow the insurance company time to find any fraudulent information in the application. A judgment, decree, or order that gives a pension plan participant access to retirement assets that must be used to pay an ex-spouse or dependent children. Qualified endorsement A signature on the back of a negotiable instrument transferring the amount to some other party but that includes wording that limits the endorser's liability . Qualified opinion An auditor's opinion expressing certain limitations of an audit . Qualified plan or trust A tax-deferred plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment.
Tax is paid only when amounts are drawn from the trust .
The plan may provide for employer contributions, as in a pension or profit-sharing plan , as well as employee contributions. Employers can deduct plan contributions made on behalf of eligible employees on the business's tax return as business expenses. Plan earnings are not taxed to the employee until withdrawn. A trust that allows a surviving spouse to receive income generated from the trust, while the actual distribution of the trust's assets is made to other beneficiaries such as the grantor's children. A payment representing an employee's interest in a qualified retirement plan.