Retirement Plan

Retirement Plan means:
a plan provided by an employer for an employee's retirement or by a self-employed individual for his or her own retirement. Because of the tax advantages, most qualified retirement plans are designed to ensure a present deduction to the employer, while the employee is permitted to avoid recognizing the income until he or she has actually or constructively received it.

See also other Tax Terms and Definitions in U.S.A.

individual retirement account (IRA); Keogh plan; qualified plan.

Employee Retirement Plan

Employers who want to provide retirement benefits for employees customarily establish a pension, profit-sharing or stock bonus plan that qualifies for preferential tax treatment. This includes: in some instances, favorable tax treatment of distributions.