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Retirement Planning
Chapter 3: Qualified Plan Overview/ADVANTAGES OF QUALIFIED PLANS (1 OF 2)
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Chapter Study Session

Chapter 3: Qualified Plan Overview

ADVANTAGES OF QUALIFIED PLANS (1 OF 2)

01.Core Concepts

• Taxation of Contributions to Plans • Income tax deferred • Payroll taxes avoided on employer contributions  No avoidance for employee elective deferrals • Tax Deferral of Earnings and Income • ERISA Protection • Anti-alienation  Prohibits any action that may cause the plan assets to be assigned, garnished, levied, or subject to bankruptcy proceedings • Protection from employers