A qualified retirement plan is a type of retirement plan that meets the requirements of the Internal Revenue Code. Under Section 401 (a) the Qualified Retirement Plan is held eligible to receive certain kinds of tax benefits. Basically, this kind of retirement plans are being established by an employer for the advantage of the company employees. The qualified retirement plan does provide company employers with tax break for the contribution and effort they do make for the company. Qualified Retirement plans thus allow the employees to defer a particular portion of their salaries into the plan especially for the purpose of reducing employee’s chances of presenting income-tax liability by reducing taxable income.