Is 401K Qualified Or Nonqualified? 
For a pension plan to be Qualified it must comply with the Internal Revenue Code -LRB- IRC . -RRB- Employer sponsored plans that provide for separate employee accounts can qualify under section 401 -LRB- k -RRB- of the IRC . Retirement plans do not need to be qualified but to obtain a reduction in current income tax , they must be qualified . An Individual Retirement Account is qualified under the IRC . 