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Qualified Deferred compensation plans are plans such as a 401(k) and other similar qualified vehicles
Non qualified plans are plans that do not have the tax benefits of a qualified plan, and that are not covered under ERISA
Because a non-qualified plan is not covered under ERISA, the employer has more flexibility as to contributions. They can discriminate against employees freely, benefits do not have to follow any rules (for example, the $17,500 limit for 401(k) plans.
But, the employer gives up the up-front deduction for contributions to the plan, but they can take a deduction when benefits are paid.
A great discussion of qualified vs nonqualified plans can be found, HERE
Please let me know if you have further questions.
Thank you for your answer.
What are the rules to make the plan qualified?
And so, non-qualified plan is those plan that are NOT qualified, right?
You would follow the rules for a 401(k) or similar vehicle
that's right...they are not qualified
Does the IRS define what qualified plans mean?
Yes, you would look to the rules for plans such as 401(k), SEP IRA, Defined Contribution plans, etc
OK. Are there a list of plans that are qualified?
Let me check
You will have to follow the rules of ERISA, which can be found, HERE
Thank you for your help! These are all what I need for now. Have a great day!