1. INTRODUCTION TO QUALIFIED PLANS CHAPTER 20

2. A. Management Objectives • Retirement saving • Tax deferral • 4 Rs • Encourage productivity • Discourage collective bargaining

3. B. Government Role • Social security • Early tax benefits • Current policy issues: • Tax revenue loss • Discrimination in favor of highly compensated employees • Encouraging private savings • Interest group pressure • Mandatory retirement plan coverage

4. C. Qualified Plan Characteristics • Eligibility and plan coverage • Nondiscrimination in benefits and contributions • Funding requirements • Vesting requirements • Limitations on benefits and contributions • Payout restrictions • Top-heavy rules

5. D. Tax Benefits of Qualified benefits • immediate employer deduction • No current tax to employee • Tax deferral and lump sum provisions

6. E. Categories of Qualified Plans • Pension and profit-sharing plans • Defined- benefit an defined-contribution plans • Specific types of qualified plans: • Defined-benefit pension plan • Cash-balance pension plan • Target-benefit pension plan • Money-purchase pension plan • Profit-sharing plan • 401(k) plans • ESOP

7. G. Government Regulation: • IRC • ERISA • PBGC • Other