An employer‑sponsored retirement plan is one that is sponsored by an organization, and its operation is regulated under rules such as ERISA and the Internal Revenue Code. Eligibility is required, and contributions are made by employees, by employers, or both. Tax‑advantages are provided: contributions are generally deductible, earnings are allowed to grow tax‑deferred, and protections against creditor claims are offered. Vesting schedules are set under employer plan terms—often complying with maximum limits like a 3‑year cliff or a 6‑year graded schedule. Annual nondiscrimination tests and contribution caps are maintained, and required minimum distributions are triggered at standard ages. A qualified employer‑sponsored retirement plan delivers both security to participants and compliance assurance to sponsors.

Qualified Pension: What It Is, Requirements & Key Benefits

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