What Does It Mean When A Retirement Plan Is Said To Be Tax Qualified? 
Qualified retirement plans can be defined benefit or contribution plan . In a defined contribution plan , the contributions are pretax -LRB- or qualified -RRB- . The accounts accumulate tax deferred and distributions are taxable as ordinary income tax rates . Qualified defined contribution plans , like 401 -LRB- k -RRB- s , are under ERISA -LRB- Employee Retirement Income Security Act of 1974 . -RRB- 