Qualification Requirements For A Retirement Plan

3/5/2026

To qualify for the special tax treatment offered to qualified Retirement Plans by the Tax Code and IRS, a plan must meet certain qualification requirements, including:

• The plan must be in writing
• The plan must be communicated to employees. This ensures transparency and human resources compliance.
• The plan must be established with the intent of being permanent.
• The plan must be maintained for the exclusive benefit of employees. This is a core responsibility for an HR Generalist managing benefits.
• The plan cannot discriminate in favor of highly compensated employees.
• The plan must satisfy minimum vesting and distribution rules. These rules are as critical as FLSA standards for compensation.
• Plan assets must be held in trust