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QUALIFIED PLAN V. NON-QUALIFIED PLAN
QUALIFIED |
NON-QUALIFIED |
Where is Money for Benefit Payments Held? |
Segregated Trust |
Typically Corporate Reserve |
ERISA |
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Taxation to Individual |
When received |
When received |
Deduction by Corporation |
When paid to trust |
When paid to participant |
Reserves Available for |
No |
Yes |
Available for
Employee |
Limited |
Flexible |
Benefit Design |
Limited to IRS regs. |
Flexible |
Fiduciary Liability |
Yes |
Typically No |
Termination of Plan |
Limited |
Flexible |
Funding Basis |
Actuarially determined |
Simulates input of Qualified Plan |